Folk music arose, and best survives, in societies not yet affected by mass communication and the commercialization of culture. It normally was shared by the entire community (and its performance not strictly limited to a special class of expert performers), and was transmitted by word of mouth.

During the 18th and 19th centuries, folk music took on a second meaning: it describes a particular kind of popular music which is culturally descended from or otherwise influenced by traditional folk music. Like other popular music, this kind of folk music is most often performed by experts and is transmitted in organized performances and commercially distributed recordings. However, popular music has filled some of the roles and purposes of the folk music it has replaced.

Folk music is somewhat synonymous with traditional music. Both terms are used semi-interchangeably amongst the general population; however, some musical communities that actively play living folkloric musics (see Irish traditional music and Traditional Filipino music for specific examples), have adopted the term traditional music as a means of distinguishing their music from the popular music called "folk music," especially the post-1960s "singer-songwriter" genre.