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A Java Virtual Machine (JVM) is a virtual machine that interprets Java bytecode and provides a runtime environment to execute Java applications across different platforms, enabling "write once, run anywhere" portability. It works by taking compiled Java code, loading it, and converting it into native machine code that a computer's specific CPU can understand. Key components include a class loader, memory areas, and an execution engine with a Just-In-Time (JIT) compiler for performance. 

Compilation: Java source code is compiled into an intermediate language called bytecode, not to native machine code.

Loading: The JVM's class loader loads the necessary .class files into memory.

Execution: The execution engine then converts the bytecode into native machine code that the host CPU can execute.

Interpreter: Reads and executes bytecode line by line (slower).

Just-In-Time (JIT) compiler: Compiles frequently used sections of bytecode into native machine code for faster execution, improving performance.