What is the difference between Strategy and Template Method?

Both Strategy and Template Method encapsulate algorithms, but they do so differently. Template Method uses inheritance: the algorithm skeleton is fixed in the base class and subclasses override specific steps — the hook calls are built into the class hierarchy and cannot be changed at runtime. Strategy uses composition: the entire algorithm is encapsulated in a strategy object that is injected into the context and can be swapped at runtime. Template Method is simpler when you have one algorithm with a few variable steps. Strategy is more flexible, more testable, and preferred by modern design (favoring composition over inheritance). In practice, Strategy + dependency injection has largely superseded Template Method.