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diff --git a/actions/post-step-content/README.md b/actions/post-step-content/README.md
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+# Post Step Content Action
+
+A composite action that posts step content to GitHub issues for GitHub Skills exercises.
+
+## Usage
+
+```yaml
+- name: Post step content
+  uses: skills/exercise-toolkit/actions/post-step-content@v0.5.0
+  with:
+    issue-url: ${{ needs.find_exercise.outputs.issue-url }}
+    step-content-file: ".github/steps/2-commit-a-file.md"
+```
+
+## Inputs
+
+| Input               | Description                                       | Required | Default |
+| ------------------- | ------------------------------------------------- | -------- | ------- |
+| `issue-url`         | URL of the issue to post content to               | ✅       | -       |
+| `step-content-file` | Path to the markdown file containing step content | ✅       | -       |
+| `template-vars`     | Template variables in YAML or JSON format         | ❌       | `""`    |
+
+## Examples
+
+### Basic Usage
+
+```yaml
+- uses: skills/exercise-toolkit/actions/post-step-content@v0.5.0
+  with:
+    issue-url: ${{ needs.find_exercise.outputs.issue-url }}
+    step-content-file: ".github/steps/3-open-a-pull-request.md"
+```
+
+### With Template Variables
+
+```yaml
+- uses: skills/exercise-toolkit/actions/post-step-content@v0.5.0
+  with:
+    issue-url: ${{ needs.find_exercise.outputs.issue-url }}
+    step-content-file: ".github/steps/step-finished-prepare-next-step.md"
+    template-vars: |
+      next_step_number: 4
+      congratulations_message: "Great work!"
+```
+
+### Using Development Version
+
+```yaml
+- uses: skills/exercise-toolkit/actions/post-step-content@main
+  with:
+    issue-url: ${{ needs.find_exercise.outputs.issue-url }}
+    step-content-file: ".github/steps/x-review.md"
+```
+
+## What This Action Does
+
+1. **Checkout exercise-toolkit**: Gets the markdown templates
+2. **Process templates** (if template-vars provided): Uses `skills/action-text-variables` to process template variables
+3. **Post step completion message**: Adds a congratulatory comment indicating the step is finished
+4. **Post step content**: Adds the step content as an issue comment
+5. **Add progress comment**: Posts a "watching for progress" comment
+
+## Requirements
+
+- Requires `GITHUB_TOKEN` with `issues: write` permissions
+- The calling workflow must have checked out the repository to access step content files
+
+## Development
+
+This action is part of the GitHub Skills exercise-toolkit and is designed to standardize step content posting across all GitHub Skills exercises.
diff --git a/actions/post-step-content/action.yml b/actions/post-step-content/action.yml
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+name: "Post Step Content"
+description: "Posts step content to GitHub issue and manages workflow transitions"
+inputs:
+  issue-url:
+    description: "URL of the issue to post content to"
+    required: true
+  step-content-file:
+    description: 'Path to the markdown file containing step content (e.g., ".github/steps/2-step.md")'
+    required: true
+  template-vars:
+    description: "Template variables in YAML or JSON format"
+    required: false
+    default: ""
+
+runs:
+  using: "composite"
+  steps:
+    - name: Get response templates
+      uses: actions/checkout@v4
+      with:
+        repository: skills/exercise-toolkit
+        path: exercise-toolkit
+        ref: main
+
+    - name: Build content from template
+      id: build-content
+      if: inputs.template-vars != ''
+      uses: skills/action-text-variables@v2
+      with:
+        template-file: ${{ inputs.step-content-file }}
+        template-vars: ${{ inputs.template-vars }}
+
+    - name: Create comment - step finished
+      shell: bash
+      run: |
+        gh issue comment "${{ inputs.issue-url }}" \
+          --body-file exercise-toolkit/markdown-templates/step-feedback/step-finished-prepare-next-step.md
+      env:
+        GH_TOKEN: ${{ github.token }}
+
+    - name: Create comment - add step content
+      shell: bash
+      run: |
+        if [ "${{ inputs.template-vars }}" != "" ]; then
+          gh issue comment "${{ inputs.issue-url }}" \
+            --body "${{ steps.build-content.outputs.updated-text }}"
+        else
+          gh issue comment "${{ inputs.issue-url }}" \
+            --body-file "${{ inputs.step-content-file }}"
+        fi
+      env:
+        GH_TOKEN: ${{ github.token }}
+
+    - name: Create comment - watching for progress
+      shell: bash
+      run: |
+        gh issue comment "${{ inputs.issue-url }}" \
+          --body-file exercise-toolkit/markdown-templates/step-feedback/watching-for-progress.md
+      env:
+        GH_TOKEN: ${{ github.token }}