Conventional research involves participants primarily as sources of data (Wallerstein & Duran, 2006), relies upon a positivist tradition wherein researchers are seen as neutral, objective observers (Bhawuk, 2008), and is not necessarily concerned with the application of findings to improve the social conditions of those involved. In many places around the world, this has led to distrusting relationships between communities and researchers, and has also likely limited the potential for research to help ameliorate social problems (Smith, 1999). In this article, action research is presented as an alternative to conventional research practices, and is examined in relation to four community psychology values. A brief history and the main principles of action research are described, followed by a discussion of its evolution to participatory, or community-based participatory research (CBPR), and connection to four values identified by Bond (2016). These include: 1) empowerment, 2) promotion of social justice, equity and social change, 3) attention to diversity in its various forms, and 4) adoption of an ecological perspective and multilevel analyses. Each value is discussed in terms of theoretical alignment as well as challenges and successes in application to research and practice. This work deepens the rationale for the use of action research in community psychology, and may be used as a lens to evaluate practice and research.