Rolling circle replication is a form of DNA replication that occurs in circular DNA like plasmids, bacteriophages, and viroids. It involves five key steps: 1) a circular double-stranded DNA template is nicked at a single origin site, 2) the exposed 3' end is used to initiate replication of the leading strand while displacing the 5' end, 3) the displaced single-stranded DNA acts as the lagging strand and is replicated through Okazaki fragments, 4) both the displaced and unnicked strands are fully replicated, and 5) the displaced strand is rejoined to form a circular DNA product.