Virtual displacement and differential displacement are related concepts in mechanics, but they differ in context and application. Virtual displacement refers to an imagined change in position that occurs without the passage of time, used primarily in the context of static systems and equilibrium. In contrast, differential displacement pertains to an infinitesimally small change in position that is time-dependent, often used in calculus and dynamic systems. While both involve small changes in position, virtual displacement is a specific case that does not imply actual movement. Understanding these distinctions is crucial for applying principles of mechanics correctly.