The most prominent difference can be categorized below: Design: Headsets are headphones with a visibly attached microphone, while headphones are often built with an invisible integrated Mic in the headphone body, which gives them a more sleek look. Application: Both types offer a hands-free experience for you. Headsets are often being used at the customer service centers for agents to type on the computer while adjusting the position of the microphone to give a clearer sound if needed. Headphones have wider use, they can be used by music professionals, producers, movie lovers, etc. Price: Compared within the same price range, since the headset’s price not only includes the construction, but also the additional microphone, a $100 headphone will sound better than a $100 headset.