Peludo vs. velludo

The Spanish words 'peludo' and 'velludo' both mean 'hairy' or 'having a lot of hair on the body'. They can be used interchangeably in some context, but there are certain nuances in their usage as highlighted below.

Peludo

'Peludo', derived from 'pelo', typically refers to a more general concept of 'hairy'. It could refer to any part of the body or an object covered in hair, regardless of length or thickness.
El perro es muy peludo.
(The dog is very hairy.)
Mi amigo es un poco peludo.
(My friend is a bit hairy.)
El calcetín estaba lleno de pelo peludo de gato.
(The sock was full of hairy cat fur.)

Velludo

'Velludo', derived from 'vello', tends to refer to small, thin, soft hairs. It commonly refers to human body parts such as arms or legs where the hair isn't typically thick or long but rather thin and soft.
Sus brazos son velludos.
(His arms are hairy.)
El durazno tiene una piel velluda.
(The peach has a hairy skin.)
Ella tiene las piernas velludas.
(She has hairy legs.)

Summary

'Peludo' and 'velludo' both mean 'hairy', but they're used differently. While 'peludo' refers broadly to any type of hairiness, 'velludo' is often used describing thin, soft hairs.