You can combine vector objects to create shapes in a variety of ways in Illustrator. The resulting paths or shapes differ depending on the method you use to combine the objects.
Pathfinder effects let you combine multiple objects using interaction modes. When you use Pathfinder effects, you can’t edit the interactions between objects. See Combine objects using Pathfinder effects.
Compound shapes let you combine multiple objects and specify how you want each object to interact with the other objects. Compound shapes are more versatile than compound paths because they provide four kinds of interactions: add, subtract, intersect, and exclude. In addition, the underlying objects aren't changed, so you can select each object within a compound shape to edit it or change its interaction mode. See Combine objects using compound shapes.
Compound paths let you use an object to cut a hole in another object. For example, you can create a doughnut shape from two nested circles. Once you create a compound path, the paths act as grouped objects. You can select and manipulate the objects separately using the Direct Selection tool or Group Selection tool; or you can select and edit the combined path. See Combine objects using compound paths.
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You can also add to an object by using the Blob Brush tool. When you use this brush, paths you paint are added to adjacent paths that use identical fill attributes. See Draw and merge paths with the Blob Brush tool and Building new shapes using the Shape Builder tool.
Use the top row of buttons in the panel to make paths or compound paths. To make compound shapes, use the buttons in those rows while pressing the Alt or Option key.
Choose from the following shape modes:
Intersect Shape Areas
Uses the area of the component to clip the underlying geometry as a mask would.
Exclude Overlapping Shape Areas
Uses the area of the component to invert the underlying geometry, turning filled regions into holes and vice versa.
Use the bottom row of buttons in the panel, called Pathfinder effects, to create final shape combinations on the first click. (See Apply Pathfinder effects.)
A. All components in Add mode B. Subtract mode applied to squares C. Intersect mode applied to squares D. Exclude mode applied to squares
Set Pathfinder Options from the Pathfinder panel menu or by double-clicking a Pathfinder effect in the Appearance panel.
Precision
Affects how precisely the Pathfinder effects calculate an object’s path. The more precise the calculation, the more accurate the drawing and the more time is required to generate the resulting path.
Divide And Outline Will Remove Unpainted Artwork
Deletes any unfilled objects in the selected artwork as you click the Divide or Outline button.
Pathfinder effects let you create new shapes out of overlapping objects. Apply Pathfinder effects by using the Effects menu or the Pathfinder panel.
Pathfinder effects in the Effects menu can only be applied to groups, layers, and text objects. After you apply the effect, you can still select and edit the original objects. You can also use the Appearance panel to modify or remove the effect. See Apply a Pathfinder effect using the Effects menu.
Pathfinder effects in the Pathfinder panel can be applied to any combination of objects, groups, and layers. The final shape combination is created when you click a pathfinder button; after that, you can't edit the original objects. If the effect results in multiple objects, they are automatically grouped together. See Apply a Pathfinder effect using the Pathfinder panel.
Add
Traces the outline of all objects as if they were a single, merged object. The resulting shape takes on the paint attributes of the top object.
Exclude
Traces all nonoverlapping areas of the objects, and makes overlapping areas transparent. Where an even number of objects overlap, the overlap becomes transparent. Where an odd number of objects overlap, the overlap becomes filled.
Subtract
Subtracts the frontmost objects from the backmost object. You can use this command to delete areas of an illustration by adjusting the stacking order.
Minus Back
Subtracts the objects in back from the frontmost object. You can use this command to delete areas of an illustration by adjusting the stacking order.
Divide
Separates a piece of artwork into its component-filled faces (a face is an area undivided by a line segment).
Note: When you use the Divide button in the Pathfinder panel, you can use the Direct Selection or Group Selection tool to manipulate the resulting faces independently of each other. You can also choose to delete or preserve unfilled objects when applying the Divide command.
Trim
Removes the part of a filled object that is hidden. Removes any strokes and doesn't merge objects of the same color.
Merge
Removes the part of a filled object that is hidden. Removes any strokes and merges any adjoining or overlapping objects filled with the same color.
Crop
Divides artwork into its component-filled faces, and then deletes all the parts of the artwork that fall outside the boundary of the topmost object. It also removes any strokes.
Outline
Divides an object into its component line segments, or edges. This command is useful for preparing artwork that needs a trap for overprinting objects. See Create a trap.
Note: When you use the Outline button in the Pathfinder panel, you can use the Direct Selection or Group Selection tool to manipulate each edge independently. You can also choose to delete or preserve unfilled objects when applying the Outline command.
Hard Mix
Combines colors by choosing the highest value of each of the color components. For example, if Color 1 is 20% cyan, 66% magenta, 40% yellow, and 0% black, and Color 2 is 40% cyan, 20% magenta, 30% yellow, and 10% black, the resulting hard color is 40% cyan, 66% magenta, 40% yellow, and 10% black.
Soft Mix
Makes the underlying colors visible through the overlapping artwork, and then divides the image into its component faces. You specify the percentage of visibility you want in the overlapping colors.
Trap
Compensates for potential gaps between colors in artwork by creating a small area of overlap (called a trap) between two adjoining colors.
A compound shape is editable art consisting of two or more objects, each assigned a shape mode. Compound shapes make it easy to create complex shapes because you can precisely manipulate the shape mode, stacking order, shape, location, and appearance of each path included.
Compound shapes act as grouped objects and appear as <Compound Shape> items in the Layers panel. You can use the Layers panel to show, select, and manipulate the contents of a compound shape—for example, to change the stacking order of its components. You can also use the Direct Selection tool or the Group Selection tool to select components of a compound shape.
When you create a compound shape, it takes on the paint and transparency attributes of the topmost component in Add, Intersect, or Exclude mode. Subsequently, you can change the paint, style, or transparency attributes of the compound shape. Illustrator facilitates this process by automatically targeting the whole compound shape when you select any part of it, unless you explicitly target a component in the Layers panel.
A. Original objects B. Compound shape created C. Individual shape modes applied to each component D. Style applied to entire compound shape
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In the Pathfinder panel, Alt-click (Windows) or Option-click (Mac OS) a Shape Modes button. Each component of the compound shape is assigned the shape mode you select.
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Select Make Compound Shape from the Pathfinder panel menu. Each component of the compound shape is assigned the Add mode by default.
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Change the shape mode of any component by selecting it with the Direct Selection tool or Layers panel and clicking a Shape Mode button.
Note: You never need to change the mode of the backmost component, because that mode isn't relevant to the compound shape.
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To sustain maximum performance, create complex compound shapes by nesting other compound shapes (containing up to about 10 components each) instead of using many individual components.
Releasing a compound shape separates it back into separate objects. Expanding a compound shape maintains the shape of the compound object, but you can no longer select the individual components.
The shape layers and layer clipping paths (vector masks) in Adobe Photoshop are types of compound shapes. You can import shape layers and layer clipping paths into Illustrator as compound shapes and continue to manipulate them. In addition, you can export compound shapes to Photoshop. Keep the following in mind when using compound shapes with Photoshop:
Only compound shapes that reside at the top level of the layer hierarchy are exported to Photoshop as shape layers.
A compound shape painted with a stroke using a join other than round, or with a weight in points that is not an integer, is rasterized when exported to the PSD file format.
A compound path contains two or more paths that are painted so that holes appear where paths overlap. When you define objects as a compound path, all objects in the compound path take on the paint and style attributes of the backmost object in the stacking order.
Compound paths act as grouped objects and appear as <Compound Path> items in the Layers panel. Use the Direct Selection tool or the Group Selection tool to select part of a compound path. You can manipulate the shape of individual components of a compound path, but you can't change appearance attributes, graphic styles, or effects for individual components, and you can't manipulate components individually in the Layers panel.
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If you want more flexibility when creating compound paths, you can create a compound shape and then expand it.
Nonzero winding fill rule
Uses mathematical equations to determine if a point is outside or inside a shape. Illustrator uses the nonzero winding rule as the default rule.
Even-odd fill rule
Uses mathematical equations to determine if a point is outside or inside a shape. This rule is the more predictable rule because every other region within an even‑odd compound path is a hole, regardless of path direction. Some apps, such as Adobe Photoshop, use the even‑odd rule by default, so compound paths imported from these apps will use the even‑odd rule.
Self-intersecting paths are paths that intersect themselves. You can choose to make these paths either nonzero winding or even‑odd, depending on how you want them to look.
When you create a nonzero winding compound path, you can specify whether overlapping paths appear with holes or are filled by clicking a Reverse Path Direction button in the Attributes panel.
A. Four circular paths B. Circular paths selected, converted into compound path C. Reverse Path Direction applied to innermost path
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Use Even‑Odd Fill Rule button 
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the Reverse Path Direction On button 
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