I came across a new term in Java 8: "functional interface". I could only find one use of it while working with lambda expressions.
Java 8 provides
As others have said, a functional interface is an interface which exposes one method. It may have more than one method, but all of the others must have a default implementation. The reason it's called a "functional interface" is because it effectively acts as a function. Since you can pass interfaces as parameters, it means that functions are now "first-class citizens" like in functional programming languages. This has many benefits, and you'll see them quite a lot when using the Stream API. Of course, lambda expressions are the main obvious use for them.