Java provides two frameworks for building GUI applications: AWT and Swing. AWT (Abstract Window Toolkit) is the older framework and provides platform-dependent components. Swing is more advanced and its components are platform-independent. Both frameworks use containers like frames and panels to hold other components like buttons, text fields, and labels. Applets are Java programs that run in web browsers and extend the Applet class. They have a lifecycle of init(), start(), paint(), stop(), and destroy() methods. Graphics methods like drawString() are used to display graphics in applets. AWT and Swing components can both be used within applets.