Hi,
<b>Workspace</b> :- An area used or allocated for one's work, as in an office. like saving configuration info, settings..etc
Ex:eclipse workspace or microsoft visual studio
<b>Project</b>:- It's a group of workspaces from which you can manage your application or task.
Ex: In developer studio your project represents either web application or webdynpro or ejb. each has it's own workspace so, collectively known to be a project.
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