Acanthamoeba is a microscopic, free-living amoeba that can cause rare but severe infections of the eye, skin, and central nervous system. It has two stages in its life cycle - the trophozoite stage where it replicates and feeds, and the cyst stage where it becomes dormant and resistant. It is found in soil, water, and other environmental sources. When it enters the eye, it can cause Acanthamoeba keratitis, and when it enters the respiratory system or skin it can cause granulomatous amebic encephalitis by spreading to the brain. Treatment involves medications like pentamidine and antiseptic agents depending on the infected area.