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Each senses current and opens when its design limitations are exceeded. They are both used to protect you. Fuse's are intergrated into the circuit, and will blow at a certain point ( for example; if too much current runs through it ) If a fuse blows it will shutdown the whole circuit, thus protecting you from the dangerous level of current.

Circuit breakers work very similar. When they detect an excess amount of current they act as a switch and go to the OFF position and shutdown the circuit for your safety.

For more information see related links below.
Both stop conducting when there is an over-current condition. Their purpose is to prevent wires from overheating and possibly burning in an attempt to prevent damage from heat/fire.

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