Django manages static files using the `collectstatic` command and a static files app. This allows you to serve CSS, JavaScript, and images efficiently in production.

Handling static files in a Django application involves several steps to ensure that resources such as CSS, JavaScript, and images are served correctly in both development and production environments. Django provides a built-in framework for managing static files, which includes a dedicated static files app. During development, the django.contrib.staticfiles app enables automatic serving of static files through the runserver command, allowing developers to easily test their applications with live assets. When preparing for production, however, it is essential to collect all static files into a single directory using the collectstatic management command. This command gathers all static files from each app and places them in a designated directory, usually specified by the STATIC_ROOT setting. In production, a separate web server like Nginx or Apache is typically configured to serve these static files directly, ensuring better performance compared to serving them through the Django application. By properly managing static files, developers can optimize their applications for speed and efficiency, enhancing the overall user experience.