Common challenges in Power BI dashboard development include data quality issues, performance bottlenecks, and designing user-friendly interfaces. To overcome these challenges, developers should invest time in data cleaning and validation. Optimizing data models and using efficient DAX calculations can improve performance. Collaborating with end-users during the design phase ensures that the dashboard meets their needs. Additionally, staying updated with Power BI’s latest features and best practices can help developers overcome challenges and deliver high-quality dashboards.