Extreme Programming (XP) is an agile software development methodology created by Kent Beck in 1998 that emphasizes customer satisfaction, teamwork, and continuous improvement. Its core values include communication, simplicity, feedback, courage, and respect, with key practices such as test-driven development, pair programming, continuous integration, refactoring, and small releases. The benefits of XP include high customer satisfaction, improved code quality, enhanced team collaboration, and flexibility to adapt to changing requirements.