Critical emancipatory action research promoted by Carr and Kemmis has substantially influenced the field of professional development for teachers over the previous 20 years. Carr and Kemmis suggested that action researchers can improve action research methodology by adopting Foucault’s theory of power. Thus, we investigated the functions and limitations of applying Foucault’s perspectives on discourse, power, knowledge, and methodology to the action research approach. In this paper, we first explain action research and Foucault’s perspectives of discourse, power, knowledge, and methodology. Subsequently, we discuss the functions and limitations of Foucault’s perspectives and methodology. Generally, action researchers can refer to extrinsic discourses and knowledge to develop rationally practical plans. Concurrently, they should collaboratively engage in critical self-reflection to cultivate a rational consensus. These two actions were the focus of the analysis and discussion in this study because such actions can be connected to Foucault’s theories. According to Foucault, discourse and knowledge are the products of power relationships that exist in a specific social and historic environment and are likely to be problematic. The discourses and consensus among action research participants also demonstrates the aforementioned traits. By applying Foucault’s perspectives and methodology, action researchers can more effectively determine which problems warrant study and resolution. However, problem identification is not synonymous with problem solving, which is a limitation encountered when applying Foucault’s perspectives to action research. In addition, Foucault’s perspectives on “the care of the self” and “the cultivation of the self” can be used as an alternative methodological basis and can remind educational practitioners engaged in action research to consider their feelings and desires, thereby more effectively identifying problems and transforming the self.