The Restore Credentials feature, introduced by Android, aims to make the transition to a new device smoother for users by automatically signing them back into their accounts. This feature is part of the Credential Manager API and uses a restore key, which is a public key compatible with passkey/FIDO2 backends. To implement Restore Credentials, developers need to add the Credential Manager dependency to their project, create a CreateRestoreCredentialRequest object, call the createCredential method, fetch the restore key on the new device, and clear the credential state when the user signs out. This feature benefits both users and developers by providing a seamless authentication experience and leveraging existing passkey server-side infrastructure.