The word "hadith" is derived from "Tahdis" which means to "inform". It indicates the prophet (saw) sayings and his silent approval to his companion's actions.
"Sunnah" word is connected to "hadith" which means "conduct".
After the prophet Muhammed (saw) passed away, there were no direct revelations, so the importance of hadith increased.
The sunnah contained of what the prophet (saw) did, said or told not to do. It also includes how he lived his life how he spoke and his actions
The Sunnah is the second most important source of guidance