With climate change escalating to global proportions over the past decade, along with a growing population, methods are being sought to help the natural and cultivated environment function in an ecologically balanced manner. Over the past few years, there has been a significantly increased interest in research on the use of natural substances for sustainable agriculture and horticulture. One of the most effective solutions to the emerging need is biochar, which has been the subject of environmental research for years due to its potential to increase soil carbon sequestration, reduce greenhouse gas emissions, remediate contaminated soil, and alleviate anthropogenic pressures. There is evidence of improved soil fertility and increased crop yields in agricultural production after biochar application. Our work comprehensively describes the effects of biochar on soil properties, crop productivity, and mitigating environmental stresses, and its remediation potential in heavy metal-contaminated soils. We analyzed a wide range of the literature on the most important properties of biochar for various potential uses. We summarized the results of research work over the past two decades to analyze soil and plant responses to biochar application.