Extreme Programming (XP) is an agile software development methodology that values adaptability over predictability. It prescribes day-to-day practices meant to embody values like communication, simplicity, feedback, and courage. XP aims to create software that is more responsive to changing customer needs through practices like pair programming, test-driven development, and frequent small releases. The XP life cycle involves short iterative planning, designing, coding, testing, and listening phases to incorporate frequent customer feedback.