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I am bit confused with Site user and portal user. So please help me to understand what is the diff between a site and a portal. and their users.

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The original name for the feature that provides external users, i.e., customer and partners, access to Salesforce objects through a Salesforce-deployed UI was Salesforce Portal. It then became a Community Site or Community Cloud, which is a different architecture. It is currently Experience Cloud, which, AFAIK, is just a change in branding.

HTH

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    Before Salesforce, a web page that pulled together presentations (mini "web apps") from different sources was called a portal, with each source shown within it called a portlet. Not really sure why Salesforce used the term portal the way they did. See this for some waffle about portals and portlets.
    – Phil W
    Commented Jun 24, 2022 at 16:36
  • Portlets are a J2EE standard. While Salesforce has its roots in J2EE, it branched off very early. A dive into proprietary versus open portal standards could fill a site by itself. Commented Jun 25, 2022 at 19:34

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