In Jenkins, build timeouts help stop builds that take too long. When a build starts, Jenkins starts a timer. If the build finishes before the timeout, it completes normally. If the build runs longer than the timeout, Jenkins aborts it to save resources. For example, using the 'timeout' step with 5 minutes means if the build runs over 5 minutes, Jenkins stops it. This prevents builds from hanging forever. The execution table shows the timer increasing each step and the build status changing to aborted when the timeout is reached.