Difference between Site Template and Site Definition

Site Template
Site Definition
provides the basic component and layout of a new site to be created in SharePoint
Site definition is a blue print for a site. It is a collection of .XML, .ASPX, .master files which contains all the necessary components.
A site template is based on the underlying site definition
Site definition is the “Core” of a site.
Extension of site template file is .stp

Site template can be stored in a CAB based file and can be downloaded or uploaded to site collection as per user rights.

Files are stored in Content Database.
Files are stored on local disk, so it performs better.


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