Sanatana Dharma and Hinduism are synonymous. The term Sanatana Dharma, loosely translated as “Eternal Law or Way,” is self-referential. The term “Hindu,” however, is a 12th century Persian abstraction referring to the Indic civilization they found espousing certain philosophical precepts, practices, and a way of life on the banks of the Indus (therefore Hindu) river.
Over the millennia until today, the diverse adherents of Sanatana Dharma or Hindus include those who, amongst other concepts, are inspired by the Vedas and other Hindu sacred texts; accept that there are multiple paths to, perspectives on, and ways to worship the one all-pervasive Ultimate Reality, Absolute, Divine, or Consciousness (Brahman); acknowledge an underlying unity of all existence; understand life to be shaped by the law of karma and reincarnation; view dharma or right living as both a responsibility and way of being that is most conducive to spiritual growth; and see liberation (moksha) as an ultimate goal.
Other terms used to refer to Hinduism include Vedic, Sanskritic, Yogic, Indic, Dharmic, and Ancient Indian.