Hair is a subset of Particles, as you’re actually creating hair particles. If you create a particle system and set it to be a hair emitter, instead of normal particles, the system will create a lot of hairs on the desired surface and grow strands from there.
Later, when you have a hair particle system on the selected object, in the 3D View you’ll be able to switch to the Particle Mode, which will allow you to grow, cut, and comb the hair to create a hairstyle for your character.
Once your hair is in place, you can even run a simulation to make the hair follow the character’s movements and automatically react to gravity and objects that touch it.
This hair simulation feature is not limited to characters, though. You can use it to “spray” a lot of objects over a surface, such as adding trees to a forest or simulating grass on a field.
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