Keywords in Java are predefined, reserved words used for specific functions like int, class, static, if, for, public.
Reserved words in Java are also reserved by the language but may not currently serve any function but are kept for potential language enhancements.
Key difference: All keywords are reserved words, but not all reserved words are keywords. Keywords actively define behavior, while reserved words are placeholders for future functionality.
Understanding the difference helps avoid naming conflicts and prepares for potential future changes in Java language.