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Observation method is described as a method to observe and describe the behavior of a subject and it involves the basic technique of simply watching the phenomena until some hunch or insight is gained. We are almost constantly engaged in observation. "It is our basic method of obtaining information about the world around us”. Man’s eye has been a basic tool for observation for a long time. Now-a-days, a number of tools like camera, video-camera, tape-recorder etc. Are also being employed by researchers. They are also utilizing ‘laboratory conditions’ to study certain aspects. The term includes several types, techniques, and approaches, which may be difficult to compare in terms of enactment and anticipated results, the choice must be adapted to the research problem and the scientific context. As a matter of fact, observation may be regarded as the basis of everyday social life for most people; we are diligent observers of behaviors and of the material surroundings. “We watch, evaluate, draw conclusions, and make comments on interactions and relations”. However, observation raised to the rank of a scientific method should be carried out systematically, purposefully, and on scientific grounds—even if curiosity and fascination may still be its very important components. This Paper discusses the meaning and purpose of the observation method of data collection. It also dwells on how to plan for and the different types of observation. The advantages and disadvantages are also stated.