Cookies are small pieces of data stored in a user's browser that are sent back to the server with requests. They allow servers to remember stateful information about users, like items in a shopping cart. Sessions use a unique identifier to store server-side data associated with each user, like login details, allowing information to persist across multiple requests. They provide more security than cookies by storing data on the server rather than sending it back and forth with each request. This document explains how cookies and sessions work, when each is appropriate, and how to implement them in PHP.