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This study explores how Cultural-Historical Activity Theory (CHAT) can serve as a powerful analytical and developmental framework when integrated into action research to address challenges in teacher preparation and retention. Through iterative cycles of collaborative inquiry, researchers applied CHAT principles such as mediation, contradictions, multi-voicedness, and expansive learning to co-develop the teacher preparation model, a context-specific training program for novice teachers. Findings highlight how CHAT illuminated systemic tensions and enabled expansive learning through structured collaboration, practical tool mediation, and culturally responsive pedagogy. The study contributes to both theory and practice by illustrating CHAT’s utility in real-world educational contexts and its potential to transform teacher development systems.