Biochar is a carbon-rich material produced through the pyrolysis of organic biomass. Its unique properties make it a versatile asset in agricultural and environmental management. This review paper provides scientific insights into how biochar affects soil’s physical, chemical, and biological properties. It then discusses how these changes can impact crop growth and yield, addressing a key concern for farmers while also considering the potential for biochar to mitigate greenhouse gas (GHG) emissions such as carbon dioxide (CO2), Nitrous oxide (N2O), and methane (CH4), which is of public interest. Additionally, it examines the costs and benefits associated with biochar use, aiming to guide its adoption and suggest future research directions in agricultural applications. Biochar incorporation improves soil properties by enhancing structure, water retention, aeration, nutrient availability, and microbial activity. Different processes impact the effects of biochar on soil, plants, and agricultural systems, influenced by factors like biochar type, soil type, and application rate. Understanding the interaction of these elements, especially over the long term, is vital for promoting the widespread use of biochar in agriculture. Moreover, assessing the economic benefits and costs of biochar in each region is key to convincing farmers to adopt this practice.