Mahout is an Apache project that provides scalable machine learning libraries for Java. It contains algorithms for classification, clustering, and recommendation engines that can operate on huge datasets using distributed computing. Some key algorithms in Mahout include Naive Bayes classification, k-means clustering, and item-based recommenders. Classification with Mahout involves training a model on labeled historical data, evaluating the model on test data, and then using the model to classify new unlabeled data at scale. Feature selection and representation are important for building an accurate classification model in Mahout.