The Template Toolkit implements a general-purpose presentation language rather than a general-purpose programming language. What that means is that for general programming tasks, building backend applications, database access, and so on, you should continue to use Perl and the many fine modules available for use with it.
The strength of the Template Toolkit language is in building the frontend—that is, the HTML that presents the output of an application or displays the content of an XML file, the results of a database query, the collection of snapshots of your pet camel, or whatever it is that you're trying to do. It has many constructs that are familiar in programming languages, such as the use of variables (GET, SET, DEFAULT), conditional clauses (IF, UNLESS, ELSIF, ELSE, etc.), loops (FOREACH, WHILE, SWITCH, CASE), and exception handling (TRY, THROW, CATCH). However, these are generally intended to be used from the perspective of layout logic; that is, controlling how the output looks, not what the underlying application actually does. To compliment these basic operations, there are also various directives more specifically oriented to gluing chunks of content together (PROCESS, INCLUDE, INSERT, WRAPPER, BLOCK), for providing useful content-manipulation tools (FILTER, MACRO), and for the loading of external modules (USE) by which the toolkit can easily and quickly be extended.
Although we are focusing on HTML in particular, it is worth pointing out that the Template Toolkit is actually language-neutral. It operates on text files (although it can be used to generate binary files such as images or PDF documents), and as such, it doesn't really care what kind of text you're generating, be it HTML, XML, LaTeX, PostScript, or an Apache httpd.conf configuration file.