Sai

The difference between prefix-list and distribute list is that prefix-list provides the logic to identify and to permit or deny certain routes and distribute-list is the command configured in a routing protocol when you want to exert some control over routing updates. Traditionally a distribute-list used an access list to identify the routes but now distribute-list can also use prefix-list to identify the routes.

Perhaps an analogy may help the explanation: think about access-list and access-group. The access-list identifies certain traffic and permits or denies it. The access-group is used to assign an access-list to an interface. In a similar way a prefix-list identifies routes and permits or denies them and the distribute-list can assign the prefix-list to a routing protocol.

HTH

Rick