Classical approaches to artificial intelligence have in recent years been challenged by several alternative approaches. This review article focuses on one such alternative, which has come to be called 'Situated Action' (SA). I analyze recent research allied with this alternative approach, and identify five major themes that distinguish SA from more traditional research. I conclude that though much additional work is needed in order to fully elaborate the SA conception of intelligence and agenda, Situated Action does indeed suggest a number of novel research directions, as well as provide important accounts of some aspects of agency that are problematic from the classical perspective.