Action research is a three-step process involving planning, action, and fact-finding about the results. It involves systematically studying real classroom situations with the goal of understanding and improving instruction. Teachers observe problems in their practice and plan interventions. The process includes identifying a problem, reviewing existing knowledge, developing hypotheses, gathering data, analyzing results, and interpreting findings to inform practice through an action plan. The goal is for practitioners to scientifically study problems to guide decisions and actions.