Both Fog and Clouds occur as water droplets that are suspended in the sky. Almost every part of the world experience these two types of conditions in the sky. These two conditions usually occur as a result of a process called condensation. This has to do with the conversion of gas molecules to water vapor through evaporation. When the light from the sun comes on the earth surface, it evaporates the water molecules and turns them into water vapor in the sky.
This water vapor mixed with the air and it is, in turn, precipitated back as water in the form of rain. Cloud is a visible mass of water droplets suspended in the air. Fog, on the other hand, is also a form of a cloud that forms very near the ground. When fog is formed, it often comes like a thick form of cloud and it will be very difficult to see any object from afar because of the thickness of the cloud.