<p>Constructed wetlands (CWs) are a cost-effective, efficient, and long-term wastewater treatment solution in various countries. The efficacy and performance of constructed wetlands are greatly influenced by the substrate. Recently, biochar as a substrate, along with sand and gravel in constructed wetlands, has gained importance due to its various physical, chemical, and biological properties. This review presents a detailed study of biochar as a substrate in CWs and the mechanism involved in efficiency enhancement in pollutant removal. Different methods for producing biochar using various types of biomasses are also addressed. The effect of biochar in removing pollutants like biological oxygen demand (BOD), chemical oxygen demand (COD), nitrogen, heavy metals, and non-conventional pollutants (microcystin, phenanthrene, antibiotics, etc.) are also discussed. Furthermore, post-harvest utilization of constructed wetland macrophytic biomass via bioenergy production, biochar formation, and biosorbent formation is explained. Various challenges and future prospects in biochar-amended constructed wetlands are also discussed. Biochar proved to be an effective substrate in the removal of pollutants and proved to be a promising technique for wastewater treatment, especially for developing countries where the cost of treatment is a constraint. Biochar is an effective substrate; further modification in biochar with the right plant combination for different wastewater needs to be explored in the future. Future researchers in the field of constructed wetlands will benefit from this review during the utilization of biochar in constructed wetlands and optimization of biochar characteristics, viz., quantity, size, preparation method, and other biochar modifications.</p>