Legacy application modernization presents several key challenges that organizations must address to ensure success. These challenges include the need to update outdated technology, integrate with modern systems, and maintain business continuity during the transition. Additionally, organizations must manage the risks of data loss, compatibility issues, and the skills gap in both legacy systems and new technologies. Careful planning, resource allocation, and a phased approach are essential to overcome these hurdles and achieve a seamless modernization that drives efficiency and innovation.