Microprocessors and microcontrollers both have CPUs and are used for real-time applications, but they differ in key ways. Microprocessors are standalone chips that require external memory and I/O devices, have higher clock speeds, and are more versatile. Microcontrollers integrate CPU, memory, and I/O on a single chip, have lower clock speeds, and are cheaper and used for embedded systems. The 8085 was an early 8-bit microprocessor from Intel that had 40 pins, accessed 64KB of memory, and was used in early PCs and instruments.