A database is a structured collection of data that is stored and managed in a system for easy access, retrieval, and manipulation. It may contain multiple datasets, tables, and other entities. A dataset, on the other hand, refers to a collection of related data points or records that are organized for analysis. It is often a smaller, specific subset of data, typically contained within a database. For example, a database could include multiple datasets for customer data, product information, and sales transactions, each dataset being a smaller, more focused collection.