Specialization is the practice of a factor of production or an area concentrating on one or a few activities, usually in a field where one has advantage over others.

Division of labour on the other hand is specialization within the production of a commodity. It means the distribution of work among associated members in such a manner that each person performs a different operation, one in which their skills are best.

Division of labour is the splitting up of work into smaller repetitive economic tasks and each task is a responsibility of a different worker and the whole work is completed by different workers. It is a situation where the worker concentrates in a particular stage of production and leaves the rest to the other workers.