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Césped vs. grama vs. pasto

In Spanish, the words césped, grama, and pasto all refer to grass that covers the ground. However, there are regional differences in their usage.

Césped

A2
Césped is a common term in Spain for a mowed or manicured lawn. It often refers to grass used for ornamental purposes, such as the type seen in parks and gardens.
El niño está jugando en el césped.
(The child is playing on the lawn.)

Grama

B1
Grama is more often used in parts of Latin America. It can refer to both manicured lawns (in (Dominican Republic, El Salvador, Honduras, Nicaragua, Panama, Puerto Rico and Venezuela) and natural grassy areas.
La pelota rodó por la grama verde.
(The ball rolled across the green grass.)

Pasto

A2
Pasto is widely used across Latin America and can refer to any kind of grass, whether it's a lawn (in Argentina, Chile, Colombia, Mexico and Uruguay), field or grazing area. It also carries a common association with animal fodder.
Las vacas están comiendo pasto en el campo.
(The cows are eating grass in the field.)

Summary

Césped, grama, and pasto are three words for lawn or grass in Spanish. While they can be used interchangeably, there are regional preferences, with césped being more common in Spain, grama in some parts of Latin America, and pasto being widely used across Latin America with a broader range of meanings.