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The carry flag indicates that an arithmetic operation between two numbers resulted in an unsigned carry or borrow. The overflow flag indicates that an arithmetic operation between two numbers resulted in an unexpected change in sign, i.e. an overflow.

Carry is also like overflow. The difference is in interpretation. Do you consider the numbers signed or unsigned? Its all in interpretation because the hardware logic needed to add two numbers works the same, no matter if they are considered signed or unsigned.

Both flags are set or cleared together, so you can use whichever you wish.

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Q: Difference between carry flag and overflow flag in 8086?
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In the 8086/8088, the overflow flag is set when the result of an arithmetic instruction exceeds the bounds of the signed representation of a number. This is not the same as the carry flag, which is used for the unsigned representation. Both flags get set as needed. You decide which one to pay attention to.


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