Action research (AR) courses provide openings in higher education to engage students, schools and communities in democratic and socially just ways within the contexts of research, classroom learning and broader social interactions. Such opportunities are strengthened when instructors design AR courses with the goal of enabling students to experience and 'live' AR principles within the learning environment itself. In this paper, we describe and critically examine how social justice and democratic principles were reflected and experienced by students in two online AR courses we co-designed. Our findings suggest AR courses embedded with AR principles can become transformative learning environments.