Nanobiochar is an advanced nanosized biochar with enhanced properties and wide applicability for a variety of modern-day applications. Nanobiochar can be developed easily from bulk biochar through top-down approaches including ball-milling, centrifugation, sonication, and hydrothermal synthesis. Nanobiochar can also be modified or engineered to obtain "engineered nanobiochar" or biochar nanocomposites with enhanced properties and applications. Nanobiochar provides many fold enhancements in surface area (0.4−97-times), pore size (0.1−5.3-times), total pore volume (0.5−48.5-times), and surface functionalities over bulk biochars. These enhancements have given increased contaminant sorption in both aqueous and soil media. Further, nanobiochar has also shown catalytic properties and applications in sensors, additive/fillers, targeted drug delivery, enzyme immobilization, polymer production, etc. The advantages and disadvantages of nanobiochar over bulk biochar are summarized herein, in detail. The processes and mechanisms involved in nanobiochar synthesis and contaminants sorption over nanobiochar are summarized. Finally, future directions and recommendations are suggested.