Restriction enzymes, also known as restriction endonucleases, are enzymes that cut a DNA molecule at a particular place. They are essential tools for recombinant DNA technology. The enzyme "scans" a DNA molecule, looking for a particular sequence, usually of four to six nucleotides. Once it finds this recognition sequence, it stops and cuts the strands. Example: EcoRI, HindIII.
Plasmids are extrachromosomal self-replicating bacterial DNA which is used as a cloning vector in recombinant DNA technology. Example - pBR322