The instruction cycle describes the process a computer follows to execute each machine language instruction. It involves 4 phases: 1) Fetch - the instruction is fetched from memory and placed in the instruction register. 2) Decode - the instruction is analyzed and decoded. 3) Execute - the processor executes the instruction by performing the specified operation. 4) The program counter is then incremented to point to the next instruction, and the cycle repeats. Each phase involves transferring data between the program counter, instruction register, memory, and other components via a common bus under the control of a timing unit. The instruction specifies the operation to be performed, such as a memory reference, register operation, or I/O access.