Background Grounded theory is one of the most widely used qualitative research methodologies. However, it is complex and frequently misinterpreted and misapplied.

Aim To provide a critical overview of grounded theory, to support neophyte researchers’ understanding of a methodology for systematically generating theory from data.

Discussion The uniqueness of grounded theory is evident in the way researchers explicate concepts from the data during research, rather than entering the field with a list of predefined concepts. Adherence to its rigorous standards enables researchers to contribute to knowledge and practice.

Conclusion Grounded theory is particularly useful in nursing and midwifery research, where it can be applied to a broad range of topics. Neophyte researchers should not be deterred by its rigorous standards, although time and effort are required to appreciate the similarities and differences between grounded theory approaches.

Implications for practice A clear understanding of its philosophical foundations and attention to its main features should underpin researchers’ efforts to conduct a high-quality grounded theory study.