String is a special class in Java API and has so many special behaviours which is not obvious to many programmers. In order to master Java, first step is to master String class, and one way to explore is checking what kind of String related questions are asked on Java interviews. Apart from usual questions like why String is final, or  equals vs == operator, one of the most frequently asked question is what is difference between String literal and String object in Java. For example, what is the difference between String object created in following two expression :

String strObject = new String("Java");

and

String strLiteral = "Java";

Both expression gives you String object, but there is subtle difference between them. When you create String object using new() operator, it always create a new object in heap memory. On the other hand, if you create object using String literal syntax e.g. "Java", it may return an existing object from String pool (a cache of String object in Perm gen space, which is now moved to heap space in recent Java release), if it's already exists. Otherwise it will create a new string object and put in string pool for future re-use. In rest of this article, why it is one of the most important thing you should remember about String in Java.