Hydrothermal carbonization (HTC) is a proven cost-effective and energy-efficient method for waste management and value-added product recovery. There are, however, several issues that require further improvement or research. Identifying the strengths and weaknesses of HTC in comparison to traditional pyrolysis is crucial for scientists to choose between them or use both (complementary) to achieve specific product properties. Additionally, sharing information on diverse modeling approaches and scales is crucial to enhance the robustness and universality of HTC process models. In addition, the study on the applicability of hydrochars on target applications such as soil amendment is crucial to give back nutrients to soils and face the dependence on finite specific feedstocks in this field. Also, proper management of the process by-products, especially process water, must be addressed to improve the carbon and hydric footprint of the process. Reviewing the suitability of HTC to treat specific challenging wastes, whose strength is not related to their calorific value but to their nutrient composition (i.e., manures), is also an appealing topic for HTC research. This paper aims to tackle the above-mentioned issues through an updated review and discussion of research gaps that require further investigation.