Single Responsibility Principle (SRP) states that a class should have only one reason to change.
Adhering to SRP leads to better modularity, maintainability, and flexibility in software design.
Challenges of applying SRP include defining 'responsibility', increased complexity, over-engineering, testing overhead, and impact on design patterns.
SRP should be judiciously applied in critical areas of the system for improved maintainability, flexibility, and testability, requiring a good understanding of the domain and experience.