Biochar, a carbon‐rich material derived from organic biomass under low‐O2 conditions, has gained importance due to its role in mitigating climate change by sequestering carbon. It can be used as an alternative energy source and has applications in nutrient cycling, improving soil properties, and removing heavy metals and organic pollutants, thus contributing to sustainable agriculture and environmental remediation. In the face of alarming climate change, rising energy demand, and increasing pollution, the integration of biochar production into biorefineries is an important strategy to promote a sustainable and circular economy. Adopting a holistic approach to biomass utilization by developing strategies to maximize biochar production along with the production of other value‐added products while improving its quality can increase biorefineries' overall sustainability and efficiency. Fine‐tuning the biorefinery process from feedstock selection to co‐production, optimizing pyrolysis conditions, and integrating it with other technologies can help to achieve this goal while generating zero waste and diversified revenues. With the biochar market growing exponentially, further research into the long‐term impact of biochar on carbon sequestration and its application in the environment is the next step.