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  1. Right click My Computer.
  2. Click Properties.
  3. Click the Advanced tab (or click Advanced system settings in Windows Vista.)
  4. Click the Environment Variables.
  5. Under System variables, click New.
  6. Set Variable name to JAVA_HOME and Variable value to the path of JDK (C:\Program Files\Java\jdk1.8.0_05).
  7. Click OK.
  8. Click OK on the Advanced tab to close the window.
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To verify if your JAVA_HOME is set, follow the steps below :
Open a command prompt and type java -version and you should see something as shown below:

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