There's a common misconception that caramel sauce and dulce de leche are the same, and understandably so. They are often used interchangeably because of how similar they are. The main difference between the two is in their ingredients. Dulce de leche means "sweet milk," and the making of it requires heating condensed milk. The sugar in the milk browns, giving it that caramel color. Caramel, on the other hand, typically uses ingredients like butter, brown sugar, evaporated milk, salt, and sometimes vanilla extract. Recipes vary, however.