This review explores the goals and challenges as well as the policy and programmatic implications of action research in graduate teacher education as evidenced in the published literature. This literature review looks specifically at how action research is being used in graduate teacher education programs as a content area and as a methodology in manuscripts published between 2000 and 2015. The literature suggests that adaptation of action research in graduate programs has evolved beyond the one-course model to an integrative theoretical and practical approach. The treatment of action research with respect to "traditional" research in the academy is also discussed. Three goals for action research in graduate teacher education emerged from the review: action research as reflection; action research as participatory, critical inquiry; and action research as preparation for teacher leadership.