Agile development is conventional these days and with the passage of time software developers are rapidly moving from Waterfall to Agile development. Agile methods focus on delivering executable code quickly by increasing the responsiveness of software companies while decreasing development overhead and consider people as the strongest pillar of software development. As agile development overshadows Waterfall methodologies for software development, it comes up with some distinct challenges related to testing of such software. Our study is going to discuss the challenges this approach has stirred up. Some of the challenges are discussed in this paper with possible solutions and approaches used for resolving these challenges. Also, the tools in practice are mentioned to improve the efficiency of the process.