In a time when climate change increases desertification and drought globally, novel and effective solutions are required in order to continue food production for the world’s increasing population. Synthetic fertilizers have been long used to improve the productivity of agricultural soils, part of which leaches into the environment and emits greenhouse gasses (GHG). Some fundamental challenges within agricultural practices include the improvement of water retention and microbiota in soils, as well as boosting the efficiency of fertilizers. Biochar is a nutrient rich material produced from biomass, gaining attention for soil amendment purposes, improving crop yields as well as for carbon sequestration. This study summarizes the potential benefits of biochar applications, placing emphasis on its application in the agricultural sector. It seems biochar used for soil amendment improves nutrient density of soils, water holding capacity, reduces fertilizer requirements, enhances soil microbiota, and increases crop yields. Additionally, biochar usage has many environmental benefits, economic benefits, and a potential role to play in carbon credit systems. Biochar (also known as biocarbon) may hold the answer to these fundamental requirements.