The Tools directive in Jenkins pipelines tells Jenkins which tool and version to use. When the pipeline starts, Jenkins reads this directive and installs the specified tool version if needed. It then adds the tool to the PATH so pipeline steps can run commands using that tool. For example, specifying Maven 3.8.1 ensures that when the pipeline runs 'mvn -version', it uses that exact Maven version. This setup guarantees consistent builds regardless of the system's default tools. The pipeline completes after running the build steps with the configured tool.