Biochar is gaining significant attention due to its potential for carbon (C) sequestration, improvement of soil health, fertility enhancement, and crop productivity and quality. In this review, we discuss the most common available techniques for biochar production, the main physiochemical properties of biochar, and its effects on soil health, including physical, chemical, and biological parameters of soil quality and fertility, nutrient leaching, salt stress, and crop productivity and quality. In addition, the impacts of biochar addition on salt-affected and heavy metal contaminated soils were also reviewed. An ample body of literature supports the idea that soil amended with biochar has a high potential to increase crop productivity due to the concomitant improvement in soil structure, high nutrient use efficiency (NUE), aeration, porosity, and water-holding capacity (WHC), among other soil amendments. However, the increases in crop productivity in biochar-amended soils are most frequently reported in the coarse-textured and sandy soils compared with the fine-textured and fertile soils. Biochar has a significant effect on soil microbial community composition and abundance. The negative impacts that salt-affected and heavy metal polluted soils have on plant growth and yield and on components of soil quality such as soil aggregation and stability can be ameliorated by the application of biochar. Moreover, most of the positive impacts of biochar application have been observed when biochar was applied with other organic and inorganic amendments and fertilizers. Biochar addition to the soil can decrease the nitrogen (N) leaching and volatilization as well as increase NUE. However, some potential negative effects of biochar on microbial biomass and activity have been reported. There is also evidence that biochar addition can sorb and retain pesticides for long periods of time, which may result in a high weed infestation and control cost.