* Habitat is the natural environment where an organism lives. It encompasses all the physical and biological factors that influence the organism's survival.

* Territory is a defined area that an animal defends from other animals of the same species. It is usually smaller than the habitat and is used for breeding, feeding, or raising young.

In terms of size:

* Habitat can be much larger than a territory. A single habitat can encompass many territories.

* Territory is a specific area within a larger habitat.

Example:

* Habitat: A forest

* Territory: A specific area within the forest that a family of squirrels defends.

So, if you're talking about the physical area, a habitat is usually bigger. However, if you're talking about the area an animal actively controls, a territory is the relevant term.