Actual Idealism is a philosophical theory primarily associated with the work of Benedetto Croce. It posits that reality is fundamentally shaped by human thought and consciousness. According to this view, the material world is not separate from our ideas; instead, our understanding and interpretation of reality are integral to its existence. In Actual Idealism, knowledge is seen as a dynamic process where ideas evolve through experience and reflection. This perspective emphasizes the importance of subjective experience in shaping our understanding of the world, suggesting that reality is not fixed but rather constructed through our perceptions and interactions.