Phrase and sentence are two different entities of English language. A phrase is a component of English grammar whereas a sentence is the basic foundation of English language.
Sentence:
A sentence is a group of words that occur together and give a specific meaning. The sentence always contains a subject and verb.
Example:
She made a sweater out of wool.
The above example is that of a sentence. It has the subject and the verb both.
Note that it is starting with a capital letter and ending at a period. This is also one characteristic of a sentence.
Phrase:
A phrase is also a group of words but it is not a sentence but a part of a sentence. A phrase is either missing a verb or a subject.
Example:
She made a sweater out of wool.
In the above example, out of wool is a phrase. Notice that it is missing the verb and is a part of a sentence.
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