Muktananda's Siddha yoga path is based on a principle of shaktipat-diksha, which means that the kundalini shakti (primal energy) of the seeker can be awakened by the guru. Awakening kundalini shakti is said to help the seeker to move closer to spiritual liberation, or moksha.
Muktananda was considered a shaktipat guru because he was able to awaken kundalini very easily. He was even able to do this for newcomers; although, historically, it was reserved only for those with a long history of spiritual practice. His main teachings were that individuals should see God in each other and that God dwells within the self as the Self.
Muktananda established the SYDA Foundation and several Siddha yoga ashrams. He is also a founder of The Prison Project, which was created to bring Siddha yoga to prisons and imprisoned seekers.
The Siddha yoga path is now led by Muktananda's successor, Swami Chidvilasananda, who was appointed by Muktananda in 1982.