DNA replication in prokaryotes occurs through a semi-conservative process where each daughter cell inherits one old and one new DNA strand. Replication begins at the origin of replication and proceeds bidirectionally. It involves three main stages - initiation, elongation, and termination. Initiation requires unwinding of the DNA duplex by helicase at the origin. Elongation is carried out by DNA polymerase III which synthesizes new DNA strands along the leading strand continuously and in short fragments along the lagging strand. Termination occurs when the replication forks from opposite directions meet.