Centripetal force acts towards the center of a circular path, while centrifugal force, often considered fictitious, appears to act away from the center when viewed from a rotating reference frame. Centripetal force is necessary to keep an object moving in a circle, as it counteracts the object's tendency to move in a straight line due to inertia. In contrast, centrifugal force is experienced by an observer in a rotating frame, who feels a push away from the center, but does not exist in a stationary frame. The distinction lies in the perspective of the observer; centrifugal force is not a true force but a result of inertia. Understanding these forces is crucial in physics, particularly in analyzing motion in circular paths.