Action research is an important methodology that promotes participatory processes in the community, enhancing community networks and empowering people to define their own health and generate actions. Here, we performed a systematic review using the Scopus, Web of Science (WoS) and SciELO databases to identify the studies carried out on health in Latin America under the category 'Action Research'. The search terms used were 'Action Research', 'Health' and 'Latin America'. We identified the following three areas of particular relevance: (a) action research is a necessary strategy to make health actions more efficient by adapting institutional actions to specific realities; (b) action research can increase the visibility of excluded groups and demonstrates the importance of being heard; and (c) action research can promote community empowerment by considering community members as knowledge agents who can transform their own reality. We report that action research processes which highlight the emancipatory and democratizing potential of community participation are subject to controversy regarding the production of and access to knowledge and the issues related to health. However, action research is not usually used in the development and implementation of institutional health interventions.