Inlaid means decorated with pieces set flush into the surface. An inlaid box, inlaid with mother of pearl, an inlaid table.
Flush is the whole point — inlay sits level with the surface where an applied decoration sits proudly on it, and that is what separates the two crafts. Marquetry is inlay in wood veneer. The past form of inlay is inlaid.
1adjectiveinlaidDecorated with pieces set flush into the surface.
“The wooden box had an inlaid lid decorated with pieces of mother-of-pearl.”
inlaid is a quality of decoration.
inlay comes from in- + lay.
Etymology from Wiktionary, CC BY-SA