Hydrothermal carbonization is a promising strategy for the resource utilization of agricultural wastes. However, the effect of hydrochar on ameliorating saline–sodic soil remains unclear. In the present study, a novel hydrochar amendment was prepared from spent mushroom substrate (SMSHC), followed by an incubation study of saline–sodic soil samples with different pH values (A, pH 9.83; B, pH 8.98; C, pH 8.21). The results demonstrated that SMSHC reduced the adverse effects of saline–sodic soil effectively, and the best effect was obtained when 6% SMSHC was added. Soil pH and ESP decreased by 0.34–0.75 units and 1.0–13.0% at 6% SMSHC loading, respectively. The maximum percentage increase in the soil’s available N, available P, and DOC was 72.3, 221, and 408%, respectively. In the subsequent rice pot seedling experiment, decreased malondialdehyde (MDA) content and increased K+/Na+ ratio, proline, soluble sugar, total N, and total P in plant samples were observed. This study verifies hydrothermal carbonization as an alternative method, except for the widely used pyrolysis, to recycle biomass wastes into valuable products for soil remediation.