A megalomaniac is someone who has an obsessive desire for power and control, often with delusions of grandeur. A narcissist is someone who has an excessive sense of self-importance and a lack of empathy for others. One key difference is that megalomaniacs seek power and control, while narcissists seek admiration and validation. One way to distinguish between the two is to observe their behavior - megalomaniacs may be more focused on dominating others, while narcissists may be more focused on seeking attention and praise.
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