A Toolbar is similar to an ActionBar.
It’s a ViewGroup so you can place it anywhere in your layout. You can even replace the ActionBar with a Toolbar.
Toolbar’s are also more flexible. You can modify its size, colour, position, etc. You can also add logos, labels, navigation icons and other views to it.
With the release of Android 5.0 and material design, Android has updated the AppCompat support libraries so that we can use Toolbars on devices running API Level 7 and up.