This literature review aims to investigate the goals and challenges as well as the policy and programmatic implications of action research in graduate teacher education. Specifically, this review looks at how action research is being used in graduate teacher education programs as a content area and as a methodology. The authors conclude that this review has discussed the trends and challenges in teacher education programs with respect to the integration of action research. They have categorized the literature in terms of three themes that have characterized the goals and related structures for action research in graduate programs within teacher education.