iloc and loc are both used for data selection in Pandas, but they differ in their indexing methods. While iloc uses integer-based indexing, loc uses label-based indexing. The choice between the two depends on the nature of the data and the specific requirements of the analysis. If you are working with integer-based indices, iloc is a more suitable choice. On the other hand, if you are using labels or a combination of labels and slices, loc is the preferred option.