Keyword-driven testing is also called table-driven testing or action-based testing. It is a software testing methodology.
Keyword-driven testing uses a spreadsheet to specify test cases in a specific format, usually in a table format. The functions are designed for each keyword. This keyword is stored in the column on a row of the table. For example, in the keyword-driven approach, each action has its corresponding function stored in the functional library. Driver scripts drive the entire flow, fetch the action, and call the corresponding function.
The keyword-driven approach is when the interaction of a user with an application is abstracted in the form of actions, and data is maintained in the external source.