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The word istikharah comes from the root word of khayr. Khayr in the Arabic language in its origins is representative of all that which is good. Khayr is an umbrella word that represents all that which is good. Istikharah means to seek the good and seek that which is good. This is the meaning of the word istikharah

When you are not sure or clear about your decision whether you say yes or no and you are unclear you do istikharah in this situation.

According to Prophet Muhammad (SAW) We must perform Istikharah when we have to make a major decision in our life.