How is CountDownLatch used in Java Multithreading?

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Yes, you understood correctly.
CountDownLatch works in latch principle, the main thread will wait until the gate is open. One thread waits for n threads, specified while creating the CountDownLatch.

Any thread, usually the main thread of the application, which calls CountDownLatch.await() will wait until count reaches zero or it’s interrupted by another thread. All other threads are required to count down by calling CountDownLatch.countDown() once they are completed or ready.

As soon as count reaches zero, the waiting thread continues. One of the disadvantages/advantages of CountDownLatch is that it’s not reusable: once count reaches zero you cannot use CountDownLatch any more.

Edit:

Use CountDownLatch when one thread (like the main thread) requires to wait for one or more threads to complete, before it can continue processing.

A classical example of using CountDownLatch in Java is a server side core Java application which uses services architecture, where multiple services are provided by multiple threads and the application cannot start processing until all services have started successfully.

P.S.
OP’s question has a pretty straightforward example so I didn’t include one.

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