The CSS attributes margin and padding are used to regulate the space around an element. They serve distinct goals and function in different ways. The space outside of an element's border is referred to as its margin. It is used to create a distance between an element and the elements around it. Margins can be used to space out a list of items or to create a gap between two columns of text, for example. Padding is the space between the border of an element and its content. It is used to provide space between an element's content and its border. Padding can be used to provide a border around an image or to add space around words in a paragraph.