ASP.NET is a specification developed by Microsoft to create dynamic web applications. It is part of the .NET framework and allows creating web applications using languages like C# and VB.NET that compile to MSIL. The key difference between ASP and ASP.NET is that ASP uses scripting languages like VBScript that are interpreted, while ASP.NET uses compiled languages. ASP.NET web forms allow creating powerful forms-based web pages using server controls.