Extreme programming is an agile software development methodology focused on delivering high-quality software efficiently in the face of changing requirements. This approach investigates and promotes technical and organizational practices designed to enhance team collaboration, system quality, and responsiveness to customer needs. Key characteristics include pair programming, test-driven development (TDD), continuous integration, small releases, simple design, and continuous customer feedback. Its significance lies in providing a structured yet flexible framework aimed at reducing development risks, improving team dynamics, and ensuring that the delivered software remains aligned with evolving business value, making it a notable model within the study of iterative and incremental software engineering processes.