Extreme Programming (XP) is an agile software development process that delivers working software frequently in short development cycles. It emphasizes customer satisfaction, team collaboration, and adaptability. Key principles of XP include frequent communication between customers and developers, simple design and frequent testing from the first day of the project, delivering working software as early as possible, and responding courageously to changing requirements. The process is based on simple rules that guide team collaboration and empowerment to productively develop software.