Extreme Programming (XP) is a software development methodology that emphasizes flexibility and customer satisfaction. It encourages frequent releases of small, functional pieces of software, allowing teams to adapt quickly to changing requirements. By involving customers throughout the process, developers can ensure that the final product meets their needs. XP also promotes teamwork and collaboration through practices like pair programming, where two developers work together at one computer. This approach helps improve code quality and fosters knowledge sharing. Other key practices include continuous integration and test-driven development, which help maintain a high standard of software and reduce bugs.