In the realm of material science, carbon materials, especially olive‐derived carbon (ODC), have become vital due to their sustainability and diverse properties. This review examines the sustainable extraction and use of ODC, a carbohydrate‐rich by‐product of olive biomass. We focus on innovative preparation techniques like pyrolysis, crucial for enhancing ODC's microstructure and surface properties. Variables such as activating agents, impregnation ratios, and pyrolysis conditions significantly influence these properties. ODC's high specific surface area renders it invaluable for applications in energy storage (in batteries and supercapacitors) and environmental sectors (water purification, hydrogen storage). Its versatility and accessibility underscore its potential for broad industrial use, marking it as a key element in sustainable development. This review provides a detailed analysis of ODC preparation methodologies, its various applications, and its role in advancing sustainable energy solutions. We highlight the novelty of ODC research and its impact on future studies, establishing this review as a crucial resource for researchers and practitioners in sustainable carbon materials. As global focus shifts towards eco‐friendly solutions, ODC emerges as a critical component in shaping a sustainable, innovation‐driven future.