Steam inhalation involves inhaling steam, which can be plain or infused with medications. There are two main types - dry inhalation of volatile medications like menthol or eucalyptus, and moist inhalation of steam. Moist steam inhalation helps loosen mucus and soothe irritated airways. Proper steam inhalation requires preparing the patient, equipment, and environment. The inhaler is filled with hot water and optional medications, then the patient inhales the steam for 15-20 minutes while being monitored.