Apache Ivy is a popular dependency management tool designed for Java projects. It helps developers manage external libraries and their versions, ensuring that all necessary components are included in a project. Ivy integrates seamlessly with Apache Ant, allowing for easy configuration and automation of builds. Ivy uses a simple XML configuration file to define dependencies, making it easy to specify which libraries are needed and their versions. It can resolve transitive dependencies, meaning it automatically fetches libraries required by other libraries, simplifying the management of complex projects.