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I am 3 semesters into a MS/PhD program (2 years MS + 3 years on PhD) currently working on my masters thesis based on research work. My research with my advisor is currently unpaid. It is also not for academic credit (besides the resulting thesis). I have been doing research for 9 months now.

How do I include this information on a CV for internship applications? This is not paid employment, nor is it strictly coursework, yet it is the most significant effort I've put in for the better part of a year.

Should it fall under Work Experience? Personal projects? I did a couple of research internships as an undergraduate. Should I lump this and them together under Research? Or should I overlook it altogether (albeit reluctantly)?

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Normally, it goes under Education. You can list a separate bullet point under your MS (expected on ...) with some details on your thesis.

A separate group for Research seems fine too, as long as you can furnish it and your CV stays at 1 page (assuming you are looking for industry internships, academic CVs can run longer).

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