The PrintWriter class in Java is used for writing formatted text to a file or output stream. It provides methods to write characters, strings, and other data types, making it easier to create text-based output. PrintWriter automatically handles character encoding, ensuring that the text is written correctly. One of the key features of PrintWriter is its ability to format output using methods like printf and format. This allows developers to control how data appears, such as specifying decimal places for numbers. Additionally, PrintWriter can be used in conjunction with other classes, like FileWriter, to write directly to files.