Theologian Carl Truman has a helpful post explaining the different views of tradition held by Protestants and Catholics :
Ask a thoughtful Protestant about where Protestantism and Catholicism most significantly diverge, and it is likely that they will mention the closely related areas of tradition and authority. Now, Protestants tend to be very suspicious of any talk of tradition as playing a role in theology as it would seem to stand somewhat in tension with the Reformation’s view of scripture alone as the authoritative basis for theological reflection. In fact, the Reformation itself represented a struggle over two types of tradition, that which scholars call T1, tradition based upon scripture as the sole source of revelation (the position of Protestants such as Luther and Calvin, and of some pre-Tridentine Catholics) and that which they term T2, tradition based upon two sources, namely, scripture and an oral tradition mediated through the teaching magisterium of the Church. This latter was arguably the position codified at the Council of Trent, although it would seem that the boundary between T1 and T2 is in practice often blurred, and very difficult to define in any formal or precise sense; nevertheless, as a heuristic device the distinction is useful and it is really only as Protestants come to understand exactly what the Catholic view of tradition is (i.e., T1 plus T2) that they can come to properly understand how tradition (T1) does not subvert the notion of scripture alone.
(Via: Justin Taylor )
