Plato believed in a world of ideal Forms that represented perfect, eternal concepts which could only be understood through reason. The material world we perceive with our senses is merely an imperfect reflection of these Forms. In contrast, Aristotle emphasized empirical observation and believed that forms exist within particular objects, not as separate ideals. He analyzed various causes including efficient, final, formal, material, and instrumental causes to understand natural phenomena by reasoning from observations of particulars to general principles.