Backpropagation through time (BPTT) is an adaptation of the standard backpropagation algorithm used for training recurrent neural networks (RNNs) by unrolling the RNN across time steps to compute gradients for weight updates. Key challenges include vanishing and exploding gradients, which affect learning dependencies in long sequences, and high computational complexity due to storing hidden states. Strategies like truncated BPTT, gradient clipping, and the use of LSTMs and GRUs help address these challenges.