The user is unable to compile a Java application using the command prompt due to the 'javac' command not being recognized. The discussion reveals that the issue likely stems from not having the Java Development Kit (JDK) installed or the path to 'javac' not being set in the system's PATH environment variable. Instructions are provided for adding the JDK path in Windows, emphasizing the importance of ensuring the correct directory is included. The conversation shifts towards the potential benefits of using a Java-specific IDE, which would simplify the compilation process. Ultimately, verifying the correct setup of the PATH variable is crucial for successful compilation.