A projection module and a terminal are provided. The projection module includes a base, a housing, a first light source, a second light source and an optical element. The housing is disposed on the base, and defines an accommodating cavity together with the base. The first light source is disposed on the base and arranged in the accommodating cavity. The second light source is disposed on the base and arranged in the accommodating cavity. The optical element is disposed on the housing and includes a diffraction area and a diffusion area. The first light source aligns with the diffraction area, the second light source aligns with the diffusion area, the diffraction area is configured to diffract light passing through the diffraction area, and the diffusion area is configured to diffuse light passing through the diffusion area.