This is a widely debated question. People have different definitions of falsetto, some people think it’s one thing, other people think it’s another, and some people confuse falsetto and head voice completely, as being the same thing.
Here is the difference: When you are singing in falsetto, it is a breathy, airy sound where your vocal cords ARE NOT TOUCHING. Air is flowing completely through them, thus producing the breathy, airy tone which isn’t even really a tone at all.
Head voice is the vocal register above chest voice, and when you are singing in head voice your vocal cords ARE touching, somewhere around three quarters of the way together. It’s a higher sound, and most of the tone is being resonated in your head before flowing out of your mouth.
Falsetto is actually just a stylistic vocal technique; head voice is a solid vocal register. That’s the difference.
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Elisha Rae