Can someone explain these 2 terms? This confuses me a lot!
EDIT: Please read the whole discussion to get the best solution.
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I guess models are simply a way to keep a bunch of instances together and make it easier to develop with them bundled into a single object. Read more about it here
Packages are a whole lot different than models. I can’t exactly explain them so you can read about them here
Not that “Model” instance. This one:
It says that it acts like “Prefabs” in Unity. But I find that Packages acts like Prefabs, too!
Could you elaborate? I don’t quite understand. Could you be referring to the toolbox and its contents?
Which part that you don’t understand?
I don’t understand what you are referring to. Could you link the developer page you showed in that image?
I think it is referring to the toolbox and the contents from what I see. I am not 100% sure about it though, I’m not familiar with Unity so I don’t know what prefabs are.
“This model mechanism is useful for creating and sharing groups of parts/objects, 3D meshes, scripts, physical contraptions, and more.”
From the Roblox Developer Hub:
Roblox packages allow you to create object hierarchies once and re-use them in as many games as you’d like. The primary advantage of this workflow is that you can keep packages in sync by updating any copy within any game to the most current version.
TL;DR:
Packages are models but if you update them they update across all games that use that package.
If I add something to the package, and I want to publish the changes,
I’ll press this.
As you can see, in the picture, the bottom package has a refresh icon next to it.
I’d want to press either one of these.
And there I go! Package has been updated to all other package(s).
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I used Packages in Roblox Studio and find that it is very similar to Prefabs. Packages (Roblox Studio) and Prefabs (Unity) help you to reuse object, which means you just need to create one object and reuse it many times. When you make changes to Packages(or Prefabs in Unity), these changes are updated to other objects.
Are Models can be sold and Packages can only be used by the owner? Is that the difference?
No. that’s not the difference.
Lets say you have a package of like 10 scripts and you rewrite them all, and you’ve used them in like 5 places. If you upload them as a model, you’d have to go to all of the places that have that model and manually replace it so it’s not out-of-date.
But with packages, you can just press “update all” (if I’m correct) and it’ll update all places with that package to be up-to-date.
Basically, packages are just a way to speed up efficiency, and I must say they’re useful.
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Oh! So Packages can be updated but Models can’t be? Is it right?
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Yeah, you have to manually replace the model in the game instead of just being able to update it. Glad to help. 
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Nice! But why Roblox says that Models are similar to Prefabs in Unity? Cuz when you make changes to a Prefab, these changes will be updated to other objects that are created from that Prefab, but Models don’t update? Is this article(Asset Types | Roblox Creator Documentation) incorrect? I find that Packages are much similar to Prefabs than Models.
Interesting! Thank you so much for this information.
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It may be a mistake or something. If you want, you could report it to this mega-thread
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Ok thanks a lot for your help! This helps me a lot!
Packages are like modules but you can require them without owning them(it can only be a modulescript)
models are different, you can put anything inside it but to insert it you need to own it