Participant observation is a qualitative research method where researchers observe subjects in their natural environment to understand their perspective. It involves using multiple senses to gather detailed and comprehensive data through various methods like diagrams, recordings, and interviews. There are different roles a researcher can take such as complete participant where they conceal their identity, complete observer where they do not participate, observer as participant where they are transparent spectators, and participant as observer where they earn trust while revealing their purpose. While it provides direct contextual insights, participant observation can be time-consuming and influence subjects.