This document discusses the differences between phenetic and phylogenetic systems of classification. Phenetic classification groups organisms based only on overall similarity of observable traits, regardless of evolutionary relationships. Phylogenetic classification groups organisms based on their inferred evolutionary histories and relationships. Key differences are that phenetic looks only at character states while phylogenetic considers character evolution, and phenetic produces phenograms while phylogenetic aims to depict genetic and temporal relationships in a phylogenetic system of classification. The document provides examples of cladistic characters used in phylogenetic classification and some challenges, like convergent evolution and lack of fossils.