The expression Third Wave was coined by Christian Theologian C Peter Wagner around 1980 to describe the recent historical work of the Holy Spirit. It is part of a larger movement known as the Neocharismatic movement. The Third Wave involves those Christians who have received Pentecostal-like experiences; however, those who identify with this movement claim no association with either the Pentecostal or Charismatic movements.

• The First "wave" occurred at the beginning of the twentieth century with the rise of the Pentecostal movement, beginning with the Azusa Street Revival.
• The Second "wave" occurred during the 1960s as the Charismatic movement spread throughout mainline protestant denominations, as well as the Roman Catholic Church. The Word of faith movement is also an expression of this movement.
• The Third "wave" occurred during the mid 1980s and continues
  
  
  
  today, and is associated with Wagner's own ministry, as well as the Vineyard Movement. The Toronto blessing is also an expression of this movement.

Many Christians, including more conservative Pentecostals, have rejected the movement as being unbiblical, since some believe it to include expressions of the Latter Rain Movement, Manifest Sons of God teaching and Kingdom Now theology, while many within the Third Wave movement also reject these doctrines.

Many critics argue that the third wave differs from the charismatic movement only in terminology, not in either theology or practice, so to distinguish between the two is to make a distinction without a difference; for example, Dr. John MacArthur makes this argument in his book Charismatic Chaos. Because of its similarity to the charismatic movement, many criticisms of the charismatic movement also apply to the Third Wave movement.