<p>Biochar-based agroforestry systems (AFS) have emerged as a promising strategy to restore soil fertility, enhance crop productivity, and contribute to climate change mitigation. This review synthesizes global evidence on the integration of biochar into AFS, highlighting both ecological and socioeconomic outcomes. Across diverse contexts, biochar application significantly improved soil health by increasing soil organic matter and soil organic carbon; for example, in Bangladesh, litchi- and mahogany-based AFS increased SOC from 0.28% to 1.87% and SOM from 0.49% to 3.23% over 30 years. In Nepal, combining 5 Mg ha^− 1 biochar with 20 Mg ha^− 1 farmyard manure improved soil pH and plant vegetative growth in coffee AFS, while in banana-based systems, urine-biochar plus compost raised yields by 41–102% and reduced poverty levels by 30%. Dryland studies in Ethiopia reported a 44% increase in new culms of <i>Yushinia alpina</i> and a 266% biomass increase under biochar plus deficit irrigation. Similarly, Colombian coffee plantations using 8–16 Mg ha^− 1 coffee-pulp biochar recorded a 20% yield increase and 34% reduction in chemical fertilizer demand, while Brazilian silvopastoral systems showed carbon stock gains of 2.5–4.2 Mg C ha⁻¹ and forage productivity improvements of 20%. This review highlights that biochar–AFS synergies improve soil health, crop productivity, and rural livelihoods while strengthening ecosystem resilience. Scaling up these practices can enhance carbon sequestration, reduce reliance on chemical fertilizers, restore degraded lands, and support sustainable land management under climate change.</p>