Key differences:
- Proxy provides the same interface. Decorator provides an enhanced interface.
- Decorator and Proxy have different purposes but similar structures. Both describe how to provide a level of indirection to another object, and the implementations keep a reference to the object to which they forward requests.
- Decorator can be viewed as a degenerate Composite with only one component. However, a Decorator adds additional responsibilities - it isn't intended for object aggregation.
- Decorator supports recursive composition
- The Decorator class declares a composition relationship to the LCD (Lowest Class Denominator) interface, and this data member is initialized in its constructor.
- Use Proxy for lazy initialization, performance improvement by caching the object and controlling access to the client/caller
Sourcemaking article quotes the similarities and differences in excellent way.
Related SE questions/links:
When to Use the Decorator Pattern?
What is the exact difference between Adapter and Proxy patterns?