Entity Beans are server-side components in the Java EE (Enterprise Edition) framework that represent persistent data stored in a database. They encapsulate the business logic and provide an interface for interacting with the underlying data, allowing developers to manage database operations like create, read, update, and delete (CRUD) easily. These beans are part of the Java Persistence API (JPA) and are designed to be used in a distributed environment. They can be managed by a container, which handles transactions, security, and concurrency, ensuring that the data remains consistent and reliable across multiple users and sessions.