Function can be used within a sql statement whereas procedure cannot be used within a sql statement.
Insert, Update and Create statements cannot be included in function but a procedure can have these statements.
Procedure supports transactions but functions do not support transactions.
Function has to return one and only one value (another can be returned by OUT variable) but procedure returns as many data sets and return values.
Execution plans of both functions and procedures are cached, so the performance is same in both the cases.