Groovy is a dynamic language for the Java Virtual Machine that adds features from languages like Python, Ruby, and Smalltalk. It supports domain-specific languages and integrates with all Java objects. Groovy compiles to Java bytecode so it runs on the JVM and can be used anywhere Java is used, including J2EE, Swing, Spring, and Seam applications. Groovy allows writing JUnit tests and development in Eclipse with debugging support.