Dispersion and diffraction are distinct phenomena related to waves. Dispersion refers to the variation in the velocity of light in a material based on wavelength, causing different wavelengths to spread out. In contrast, diffraction involves the superposition of phase-related waves, leading to intensity variations and is applicable to various wave types, not just light. Both wavelength-dispersion and amplitude-dispersion can occur, highlighting the complexity of wave behavior. Understanding these differences is crucial for studying wave interactions.