Debug is going through the code flow during run time where as tracing is giving details of execution plan, process timing details.
Debug and trace enables you to monitor the application for errors and exception with out VS.NET IDE. In Debug mode compiler inserts some debugging code inside the executable. As the debugging code is the part of the executable they run on the same thread where the code runs and they do not given you the exact efficiency of the code ( as they run on the same thread). So for every full executable DLL you will see a debug file also as shown in figure ‘Debug Mode'.Trace works in both debug as well as release mode. The main advantage of using trace over debug is to do performance analysis which can not be done by debug. Trace runs on a different thread thus it does not impact the main code thread.There is also a fundamental difference in thinking when we want to use trace and when want to debug. Tracing is a process about getting information regarding program's execution. On the other hand debugging is about finding errors in the code.