To start, there are cosmetic differences: Minimize does a little graphic effect and puts a shrunken icon of the window into your Dock (on the right hand side, not with the apps, although this can be changed). Hide makes all of the application's windows simply disappear from view without any changes to the Dock.
But the big difference lies in how you make the windows reappear.
Minimized windows require a mouse click in the Dock to summon them.
Hidden apps will reappear if you Command-Tab to the app, so you can bring back the windows using the keyboard only.
(You can also click in the Dock to get a hidden app back.)
Because I use Command-Tab heavily, and try to avoid the mouse, I use "Hide" quite a bit but never use "Mimimize" as it requires mouse interaction to get the window back.
As others have noted, you can set the Dock preferences to "minimize into application icon". This doesn't change the keyboard/mouse equation; all it does is prevent a "minimized" window from getting its own icon in the Dock - instead you have to click on the app icon in the dock to un-minimize the window.
2A minimized window does not maximize when you select its application in the app switcher (
cmd+tab
). However, all windows of a hidden application will reappear when selecting it with the app switcher. – dhulihan – 2015-09-12T23:46:36.007When I hide my app, it still appears in the dock. Why? – Daniel Cukier – 2009-10-06T16:50:17.790
1It appears in the Dock, but only the icon appears. If you minimize it, there's also a small icon representing the window on the right side, next to the Trash. – alex – 2009-10-06T17:12:06.500
4You can set Snow Leopard to combine the two options as a minimize to item setting on the dock. – Rich Bradshaw – 2009-10-06T17:12:13.503
29Minimize minimizes a single window. Hide hides the entire application. – Chealion – 2009-10-06T21:04:40.820
1The dock shows you running APPLICATIONS, and then shows or lists the applications windows when you click or click and hold, respectively. It is NOT a window list, like in Windows XP. I think it's much more logical. Also, interestingly, Windows 7 seems to be attempting to copy this idea. – Lee B – 2009-10-06T22:29:24.923
1
You may also use TinkerTool to make the icon in the Dock slightly opaque when an application is hidden. I've found that it's really helpful to my workflow.
– BrenanK – 2013-01-28T23:40:28.283