Considerable interest is being shown in using biochar production from waste biomass with a variety of disciplines to address the most pressing environmental challenges. Biochar produced by the thermal decomposition of biomass under oxygen-limited conditions is gaining popularity as a low-cost amendment for agro-ecosystems. The efficiency of biochar formation is affected by temperature, heating rate, feedstock type, particle size and reactor conditions. Properties such as pH, surface area and ash content of produced biochar increases with increasing temperatures. Biochar produced at lower heating rates may have high porosity and be beneficial for morphological changes in the soil. Biochar can help to enhance soil health and fertility as well as improve agricultural yield. As a result, biochar can assist in increasing food security by promoting sustainable agricultural systems and preserving an eco-friendly environment. Biochar is also widely being used as a sorbent for organic and inorganic pollutants, owing to its large surface area, allowing it to be immobilized from soil with ease. The functional groups and charges present on the surface of biochar play an important role in pollutants removal. This review focuses on the mechanisms of biochar production using different waste materials as a feed stock, factors that influence biochar quality as well as application of biochar in agricultural soil and their reclamation as well. This article also discusses knowledge gaps and future perspectives in the field of biochar-based toxic-pollution remediation.