Physical RAM, also known as Random Access Memory, is the actual hardware component inside your computer that stores and provides quick access to data. It plays a crucial role in determining your system's speed and performance by enabling fast data retrieval for running applications. On the other hand, Virtual RAM, also referred to as swap space or page file, is a portion of your computer's hard drive that is allocated to act as supplementary memory when your physical RAM is fully utilized. It provides additional memory capacity to prevent performance slowdowns and allows your system to handle more demanding tasks efficiently. Together, Physical and Virtual RAM work in tandem to optimize your computer's memory management, ensuring a smooth and responsive computing experience.