Hypospadias is a common birth defect in boys where the urethral opening is located on the underside of the penis rather than at the tip. It occurs when the urethra fails to form properly during fetal development. Treatment involves surgery to reposition the urethral opening, which is usually successful though there is a small risk of complications like fistulas or scar tissue formation. Left untreated, hypospadias can cause urinary issues and impaired sexual function later in life.