Webserver:

A Web server handles the HTTP protocol. When the Web server receives an HTTP request, it responds with an HTTP response, such as sending back an HTML page. To process a request, a Web server may respond with a static HTML page or image, send a redirect, or delegate the dynamic response generation to some other program such as CGI scripts, JSPs (JavaServer Pages), servlets, ASPs (Active Server Pages), server-side JavaScripts, or some other server-side technology. Whatever their purpose, such server-side programs generate a response, most often in HTML, for viewing in a Web browser.

Application Server:

As for the application server, according to our definition, an application server exposes business logic to client applications through various protocols, possibly including HTTP. While a Web server mainly deals with sending HTML for display in a Web browser, an application server provides access to business logic for use by client application programs. The application program can use this logic just as it would call a method on an object