The key difference between transformation and transmutation is that transformation is an alteration of genetic composition through gene transfer to bring about altered characters while transmutation is the process that completely changes the organism through the influence of a mutation.
Transformation and transmutation are two concepts that appear in the field of evolutionary biology. Over time, organisms have transformed and transmuted to adapt to various environmental conditions. Both terms usually explain the same phenomenon; however, there is a minute difference between transformation and transmutation.