Biochar, a carbon-rich material produced through the thermochemical conversion of biomass in oxygen-limited environments, is emerging as a dual-purpose solution for climate change mitigation and soil enhancement. By sequestering atmospheric carbon in a stable, solid form for centuries, biochar effectively transforms agricultural waste into a long-term carbon sink. Beyond its role in negative emissions, its highly porous structure and expansive surface area significantly improve soil health. Biochar application enhances water retention, reduces nutrient leaching, and fosters a robust microbial ecosystem, particularly in degraded or acidic soils. This synergy between environmental restoration and agricultural productivity positions biochar as a critical tool in sustainable land management. This article highlights the mechanism of biochar production, its socio-economic benefits and applications in various fields.