The answer to 'air handler vs' is that an air handler is a key component of a central HVAC system, while a furnace is a separate heating appliance. Air handlers circulate air through the ductwork and work in conjunction with an outdoor air conditioner or heat pump. Furnaces are self-contained heating units that generate warm air and push it through the ducts.
Air handlers are typically installed in the attic, basement, or utility closet and are connected to the home's ductwork. They contain a blower fan, air filters, and coils that help cool and dehumidify the air. Furnaces are usually located in a basement, garage, or utility room and generate heat through combustion or electric resistance. Furnaces can be paired with an air handler to distribute the heated air, or they can operate as a standalone heating system.