Hydrothermal carbon (HTC) derived from biomass is a class of cost-efficient, eco-friendly functional carbon materials with various potential applications. In this work, solidstate nuclear magnetic resonance (NMR), longitudinal (T 1 ) relaxation time, and diffusion NMR were employed to investigate the structure and water dynamics for HTC and nitrogenfunctionalized hydrothermal carbon (N-HTC) samples ((N)-HTC). Results showed that the presence of N-functional groups influences the water interaction with (N)-HTC more strongly than surface area, pore size distribution, or oxygenated functional groups. Furthermore, the degree of water interaction can be tuned by adjusting the synthesis temperature and the precursor ratio. Water motion was more strongly inhibited in N-HTC than in N-free HTC, thereby suggesting the existence of a differently structured hydration shell around N-HTC particles. In addition, the diffusion data of water in the N-HTC material show two components that do not exchange on the time scale of the experiment (tens of milliseconds), indicating a significant fraction of slow mobile water that exists inside the structure of N-HTC. 1 H− 2 H isotope exchange and cross-polarization NMR results show this internal water only in a near-surface layer of the N-HTC particles. Based on these findings, a model for water interaction with (N)-HTC particles is proposed.