Scoping rules

The main difference is scoping rules. Variables declared by var keyword are scoped to the immediate function body (hence the function scope) while let variables are scoped to the immediate enclosing block denoted by { } (hence the block scope).

function run() {
  var foo = "Foo";
  let bar = "Bar";

  console.log(foo, bar); // Foo Bar

  {
    var moo = "Mooo"
    let baz = "Bazz";
    console.log(moo, baz); // Mooo Bazz
  }

  console.log(moo); // Mooo
  console.log(baz); // ReferenceError
}

run();

The reason why let keyword was introduced to the language was function scope is confusing and was one of the main sources of bugs in JavaScript.

Take a look at this example from another stackoverflow question:

var funcs = [];
// let's create 3 functions
for (var i = 0; i < 3; i++) {
  // and store them in funcs
  funcs[i] = function() {
    // each should log its value.
    console.log("My value: " + i);
  };
}
for (var j = 0; j < 3; j++) {
  // and now let's run each one to see
  funcs[j]();
}

My value: 3 was output to console each time funcs[j](); was invoked since anonymous functions were bound to the same variable.

People had to create immediately invoked functions to capture correct values from the loops but that was also hairy.

Hoisting

While variables declared with var keyword are hoisted (initialized with undefined before the code is run) which means they are accessible in their enclosing scope even before they are declared:

function run() {
  console.log(foo); // undefined
  var foo = "Foo";
  console.log(foo); // Foo
}

run();

let variables are not initialized until their definition is evaluated. Accessing them before the initialization results in a ReferenceError. The variable is said to be in "temporal dead zone" from the start of the block until the initialization is processed.

function checkHoisting() {
  console.log(foo); // ReferenceError
  let foo = "Foo";
  console.log(foo); // Foo
}

checkHoisting();

Creating global object property

At the top level, let, unlike var, does not create a property on the global object:

var foo = "Foo";  // globally scoped
let bar = "Bar"; // not allowed to be globally scoped

console.log(window.foo); // Foo
console.log(window.bar); // undefined

Redeclaration

In strict mode, var will let you re-declare the same variable in the same scope while let raises a SyntaxError.

'use strict';
var foo = "foo1";
var foo = "foo2"; // No problem, 'foo1' is replaced with 'foo2'.

let bar = "bar1"; 
let bar = "bar2"; // SyntaxError: Identifier 'bar' has already been declared

This article about Javascript Strict Mode might interest you: John Resig - ECMAScript 5 Strict Mode, JSON, and More

To quote some interesting parts:

Strict Mode is a new feature in ECMAScript 5 that allows you to place a program, or a function, in a "strict" operating context. This strict context prevents certain actions from being taken and throws more exceptions.

And:

Strict mode helps out in a couple ways:

• It catches some common coding bloopers, throwing exceptions.
• It prevents, or throws errors, when relatively "unsafe" actions are taken (such as gaining access to the global object).
• It disables features that are confusing or poorly thought out.

Also note you can apply "strict mode" to the whole file... Or you can use it only for a specific function (still quoting from John Resig's article):

// Non-strict code...

(function(){
  "use strict";

  // Define your library strictly...
})();

// Non-strict code...

Which might be helpful if you have to mix old and new code ;-)

So, I suppose it's a bit like the "use strict" you can use in Perl (hence the name?): it helps you make fewer errors, by detecting more things that could lead to breakages.

Strict mode is now supported by all major browsers.

Inside native ECMAScript modules (with import and export statements) and ES6 classes, strict mode is always enabled and cannot be disabled.