What is the difference between shy and timid?

Yes, there is a difference.

When an individual is shy, they are easy to embarrass and reluctant to converse with others. They tend to not like being the center of attention and dislike to be at hectic areas or social gatherings and dislike public speaking.

When someone is timid, they are frightened of specific events, places, animals, objects, etc. They also often lack self assurance and have low confidence and courage in themselves.

However, they tend to overlap one another and a person may often have aspects of both and won't apply to all.