What's the difference between a proc and a lambda in Ruby?

One difference is in the way they handle arguments. Creating a proc using proc {} and Proc.new {} are equivalent. However, using lambda {} gives you a proc that checks the number of arguments passed to it. From ri Kernel#lambda:

Equivalent to Proc.new, except the resulting Proc objects check the number of parameters passed when called.

An example:

p = Proc.new {|a, b| puts a**2+b**2 } # => #<Proc:0x3c7d28@(irb):1>
p.call 1, 2 # => 5
p.call 1 # => NoMethodError: undefined method `**' for nil:NilClass
p.call 1, 2, 3 # => 5
l = lambda {|a, b| puts a**2+b**2 } # => #<Proc:0x15016c@(irb):5 (lambda)>
l.call 1, 2 # => 5
l.call 1 # => ArgumentError: wrong number of arguments (1 for 2)
l.call 1, 2, 3 # => ArgumentError: wrong number of arguments (3 for 2)

In addition, as Ken points out, using return inside a lambda returns the value of that lambda, but using return in a proc returns from the enclosing block.

lambda { return :foo }.call # => :foo
return # => LocalJumpError: unexpected return
Proc.new { return :foo }.call # => LocalJumpError: unexpected return

So for most quick uses they're the same, but if you want automatic strict argument checking (which can also sometimes help with debugging), or if you need to use the return statement to return the value of the proc, use lambda.

The real difference between procs and lambdas has everything to do with control flow keywords. I am talking about return, raise, break, redo, retry etc. – those control words. Let's say you have a return statement in a proc. When you call your proc, it will not only dump you out of it, but will also return from the enclosing method e.g.:

def my_method
  puts "before proc"
  my_proc = Proc.new do
    puts "inside proc"
    return
  end
  my_proc.call
  puts "after proc"
end

my_method

shoaib@shoaib-ubuntu-vm:~/tmp$ ruby a.rb
before proc
inside proc

The final puts in the method, was never executed, since when we called our proc, the return within it dumped us out of the method. If, however, we convert our proc to a lambda, we get the following:

def my_method
  puts "before proc"
  my_proc = lambda do
    puts "inside proc"
    return
  end
  my_proc.call
  puts "after proc"
end

my_method
shoaib@shoaib-ubuntu-vm:~/tmp$ ruby a.rb
before proc
inside proc
after proc

The return within the lambda only dumps us out of the lambda itself and the enclosing method continues executing. The way control flow keywords are treated within procs and lambdas is the main difference between them