A habit loop consists of three key components: cue, routine, and reward. The cue is a trigger that initiates the habit, such as a specific time of day or an emotional state. The routine is the behavior or action that follows the cue, while the reward is the positive outcome that reinforces the habit, making it more likely to be repeated. Understanding the habit loop can help individuals change unwanted behaviors or develop new, positive habits. By identifying the cues and rewards associated with a habit, one can modify the routine to create healthier patterns, ultimately leading to improved well-being and productivity.