Color correction involves removing unwanted color casts from an image, while color grading adds color to convey mood or story. The document provides tips for both color correction and grading in Photoshop, including using tools like Auto Color, Curves adjustments, blending inverse colors, and photo filters to remove casts, and adjusting saturation, contrast, and complementary colors to add mood through warmth, coldness, or retro looks. It also discusses using LUTs/look up tables to apply complex color conversions for grading photos or films.