This chapter explores the nature of action research in new product development. Characterized by pressures associated with product concept effectiveness and process performance, new product development is a challenging but rewarding setting for action research. By re-assessing a previously reported action research study in the automotive industry, we identify and analyze characteristics of managing such research in new product development. On the basis of this assessment, the chapter complements previous research on managing action research projects with specific insights applicable to settings in which new technologies are being built and tried out.