Continuous integration is a software development practice where developers regularly merge their code changes into a central repository, and automated builds and tests are run. This allows teams to detect problems early, reduce integration issues, and increase software quality and visibility. Key components of a CI system include version control, a CI server to monitor changes and run builds/tests, build scripts, and integration machines. Benefits include reduced risk, less rework, and more confidence in changes. Common challenges are long build times, fragile tests, and information overload.