The first part of this paper describes the rationale for and process of engaging student teachers in action research during the fourth and final year of their teacher education, which is also their first year as teachers (induction year). During this year the novice teachers are engaged in an action research project as a compulsory assignment in the course "Teacher as researcher". The objective of the course is to provide novice teachers with reflective tools for systematic examination of their work as teachers. The second part of the paper documents the learning process of the teachers of the course (which can also be viewed as action research), since we jointly planned the course, engaged in reflective dialogues with the students and among ourselves and systematically examined our work by personal diary writing and inviting informal and more formal (questionnaire) feedback from the students. The process of our action research is documented in this paper, whereas the product is hopefully implemented in teaching a better course and in more effective support of our students.