| System Exception | Application Exception |
| SystemExceptions are thrown by the CLR and are of more generic nature. | ApplicationExceptions are thrown by Applications. |
| All the exception is defined by the .Net | It is used when we want to define user-defined exception. |
| It is thrown when a nonrecoverable error has occurred, such as database crash. | It is thrown when a recoverable error has occurred, such as invalid input argument. |
| It is derived from System.SystemException class. | To derive custom exceptions from the System.ApplicationException class. |
| It is raised by the system. | It is raised by the application. |
