Piaget believed that children are active participants in their own cognitive development through interactions with their environment. He described four major stages of development: sensorimotor, preoperational, concrete operational, and formal operational. At each stage, children construct mental structures (schemas) through assimilation and accommodation. When schemas cannot explain new experiences, equilibrium is disturbed and the child modifies their thinking. Piaget's theory emphasizes that education should be child-centered and provide stimulating environments matched to children's cognitive abilities at each developmental stage.