Monitoring involves routine tracking of project activities and progress to ensure plans are on schedule. It answers the question "what are we doing?". Evaluation assesses overall achievement and impact in a more episodic manner, answering "what have we achieved?". Both are important for program management, accountability, and learning. Monitoring focuses on inputs, outputs, and outcomes while evaluation examines outcomes and impacts. Key terms include inputs, activities, outputs, outcomes, impacts, progress monitoring, process monitoring, and M&E frameworks.