Exception handling is crucial for stable and secure applications in Java. It involves identifying and addressing errors in code that disrupt the normal flow of a program's instructions. There are two main types of exceptions: checked and unchecked, which are handled differently by the compiler and runtime environment. Developers should understand how to use exception handling to improve their code and prevent vulnerabilities for cyberattacks. Sentry is a tool that provides greater visibility into code and exceptions, making it easier to quickly identify and resolve issues, prioritize correction efforts, and build more robust applications.