Dictionaries in Python are used to store data in key-value pairs. They are unordered, changeable and do not allow duplicates. A dictionary can be created using curly braces {} and contains keys and their corresponding values separated by colon. Sets are another data type that can store multiple elements but do not allow duplicates. Sets are created using curly braces and support operations like union, intersection etc. Both dictionaries and sets support various methods to add, remove and manipulate elements.