Remote Method Invocation (RMI) allows programmers to execute remote functions and calls using the same semantics as local function calls. RMI uses stubs and skeletons, where the stub acts as a proxy for the remote object on the client side and the skeleton receives the calls on the server side. To use RMI, an interface must be defined and implemented on the server, stub and skeleton classes are generated, the remote object is registered with an RMI registry, and then clients can look up and invoke methods on the remote object.