Distance:- “how much ground an object has covered” during its motion. It is a scalar quantity.
Displacement:- how far out of place is an object. It is the shortest distance between two points. It is a vector quantity.
Example:- If a particle is moving in a circular motion. After the first cycle of its motion, the distance covered by this particle is (r is the radius of the circle. But the displacement of the particle is zero as the initial and the final position of the particle is same.