Applet

An applet is a software component, usually written in the Java programming language, which can be included in another program, say an HTML page, much in the same way as an image that is included in a web page. Applets, unlike full-fledged Java applications, cannot access certain resources on the local computer, such as files and serial devices (modems, printers etc.) and cannot communicate with most other computers across a network. Currently the rule is that, an applet can only make an Internet connection to the computer from which the applet was sent. 

Applet

Refers to a small Java program that can be embedded in an HTML page. Applets differ from full-fledged Java applications in that they are not allowed to access certain resources on the local computer, such as files and serial devices (modems, printers, etc.), and are also prohibited from communicating with most other computers across a network. See also HTML, JAVA.