Server Components and Server Actions cover most of what an App Router application needs to read and mutate data, but there remains a clear category of work they do not address: building HTTP endpoints that are consumed by something other than your own React UI. A mobile app, a third-party integration, a webhook from a payment provider, a public API for partners, or a script that polls for data all need a real URL that responds to HTTP methods with a structured response. Route Handlers are the App Router's answer to this need — a file named route.js that defines functions for HTTP methods like GET, POST, PUT, PATCH, and DELETE, turning a folder into an API endpoint.
It is worth being precise about when you reach for a Route Handler versus the alternatives, because beginners often build APIs out of habit when a Server Component or Server Action would be simpler. If your own React Server Component needs data, fetch it directly in the component — you do not need an internal API for that. If your own UI needs to mutate data on a user action, use a Server Action — you do not need a POST endpoint for that either. Route Handlers earn their place specifically when the consumer is not your rendering pipeline: external clients, machine-to-machine integrations, webhooks, and cases where you genuinely need to expose or receive HTTP with full control over status codes, headers, and response bodies. Understanding this boundary keeps you from reintroducing the very API-layer boilerplate that Server Components and Actions were designed to eliminate, while still giving you real HTTP endpoints exactly where they add value.