XSD is the short form of XML Schema Definition. It is one out of many XML schema languages recommended by the World Wide Web Consortium. XSD was published so that it will be very easy to reduce the level of confusion that usually arises when beginners are using phrases from XML schema languages. DTD is the short form of Document Type Definition. It is used to declare attributes that are present in an HTML or XML document.
DTD declares all the references and tags, plus all the entities inside a particular document to be used. If you want to use XML and you want to adhere to it, XSD will allow you to get all the set of rules to achieve this. While XSD is a part of XML schema languages, DTD is gotten from SGML. While XSD allows data types for elements and attributes, DTD does not allow this feature.