Design thinking is an iterative process that involves empathizing with users, defining problems from their perspective, ideating solutions, prototyping ideas, and testing prototypes with users. It focuses on understanding user needs through observation and interviews to identify root problems. Potential solutions are then explored through brainstorming techniques and low-fidelity prototyping before gathering user feedback through testing techniques like card sorting and the "Wizard of Oz" method to further refine solutions. The goal is to generate a wide range of ideas and learn through iterative prototyping and user testing.