Nanobiochar represents a novel intersection of nanotechnology and sustainable agriculture, holding promise for addressing contemporary challenges in soil health, carbon sequestration, and resource efficiency. Synthesis methods, unique physicochemical properties, and potential applications in various sectors are systematically analysed, contributing to a deeper understanding of this innovative bio-based nanomaterial. The social impact of nanobiochar is investigated, highlighting its role in creating sustainable livelihoods, fostering community engagement, and promoting inclusive agricultural practices. The review also includes the soil-related effects of nanobiochar. Nanobiochar’s role in mitigating soil degradation, enhancing fertility, and promoting sustainable agriculture practices is also studied. The paper evaluates the potential for nanobiochar to sequester carbon effectively and contribute to climate change mitigation efforts. Furthermore, attention is directed towards the environmental considerations and ethical implications associated with the use of nanobiochar. This review paper offers a comprehensive viewpoint on the effects of nanobiochar on environment and agriculture.