Template literals in JavaScript allow for string construction using backticks, which treat the string as a single structure with dynamic parts.Expressions inside ${} are treated as full JavaScript code and can include function calls, math operations, ternary checks, or property access.Template literals simplify string building, making code cleaner and easier to read compared to traditional concatenation methods.Tagged templates in JavaScript allow for custom string processing by handing control to a function during construction.Tagged templates break strings into sections, evaluate expressions, and pass parts to a function for custom formatting.Tag functions receive plain string sections and evaluated expressions as input and can shape the result in various ways.Tagged templates offer structured handling of dynamic content, making tasks like HTML escaping easier and more organized.Tagged templates are commonly used in CSS-in-JS libraries, query builders, markdown formatters, and translation functions.Regular template literals immediately build the string, while tagged templates delay final string construction until the tag function decides.Tagged templates provide greater control over string processing, allowing for logic injection, escaping, and custom formatting.