Although both ponchos and capes can keep you cozy, ponchos are designed to go over your head, whereas capes hang off your shoulders. Another key differentiator: Classic ponchos often lack closure, and capes typically fasten at the front of the neck.
Ponchos originated in the Andes as a defense against the elements. They didn’t restrict movement, so a wearer could continue to work or ride their horse. Capes have been used by many cultures, from monks in Tibet to royals in England. They were burly to protect from harsh weather or decorative to represent political power.