Situated learning is a learning theory developed in the late 1980s by Jean Lave and Etienne Wenger. Situated learning theory is based on the assumption that knowledge should be presented in authentic context that involves its application. Both authors argue that learning should not be viewed as transmission of abstract and contextualized knowledge between individuals, but a social process within certain conditions which include activity, context and culture. Learning occurs if learner is put into a real-world situation and into interaction with other people.

Lave's assumptions about learning were derived from her studies of people's performance in mathematics. (Mathematics was chosen just for simplicity of test design and results measuring) Her experimental conclusion was that when people acquired out-of-conctext skills in the classroom, generally they were unable to apply them in real-life situations for which they were theoretically appropriate. But that did not prevent them for developing their own, often highly effective, ways of doing things.

motivating students and by providing a rich context for learning. It emphasizes the context and application of knowledge rather than memorizing facts

Lave, J. Cognition in Practice: Mind, Mathematics and Culture in Everyday Life (Learning in Doing). NY: Cambridge University Press. 1988.