The official website of United states Department of Veterans Affairs clears our doubts regarding the difference between veteran's day and memorial day.
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Memorial Day is a day for remembering and honoring military personnel who died in the service of their country, particularly those who died in battle or as a result of wounds sustained in battle. While those who died are also remembered, Veterans Day is the day set aside to thank and honor all those who served honorably in the military - in wartime or peacetime.

In fact, Veterans Day is largely intended to thank LIVING veterans for their service, to acknowledge that their contributions to our national security are appreciated, and to underscore the fact that all those who served - not only those who died - have sacrificed and done their duty.

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Source(s):
http://www1.va.gov/opa/vetsday/vetday_faq.asp

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