The Floyd-Warshall algorithm is a dynamic programming method for finding shortest paths between all pairs of vertices in a weighted graph, known for its efficiency in dense graphs and simple implementation. However, it has limitations such as high time complexity (O(n^3)), memory intensity for large graphs, and inefficiency with sparse graphs. Alternatives like Dijkstra's and Bellman-Ford algorithms are recommended for specific scenarios, as the choice of the algorithm should depend on the graph's characteristics and the application's needs.