Although conventional on‐site wastewater treatment systems (OWTSs) provide only primary treatment of domestic wastewater, removal of a limited level of nutrients (N, P), pathogens, and pharmaceuticals and personal care products (PPCPs) could be achieved by such a treatment process. Biochar has the capacity to remove various contaminants and has been widely used as an ideal soil amendment in agriculture due to its persistence, superior nutrient‐retention properties, low cost, and ready availability. However, few applications on the use of biochar in onsite wastewater treatment have been explored. In this review, we systematically reviewed the applications of biochar in filtration‐based OWTSs for nutrient (N, P) removal and recovery as well as pathogen and PPCP removal. Although adsorption was the main mechanism for P, pathogen, and PPCP removal, biochar can also serve as the growth media for enhanced biological degradation, improves available alkalinity, and increases water holding capacity in the OWTSs. The biochar source, surface modification methods, and preparation procedures (e.g., pyrolysis temperature change) have significant effects on contaminant removal performance in biochar‐amended OWTSs. Specifically, contradictory results have been reported on the effect of pyrolysis temperature change on biochar removal performance (i.e., increased, decreased, or no change) of N, P, and PPCPs. Wastewater composition and environmental pH also play important roles in the removal of nutrients, pathogens, and PPCPs. Overall, biochar holds great potential to serve as an alternative filtration material or to be amended to the current OWTS to improve system performance in removing a variety of contaminants at low cost.