A carbonaceous material known as biochar produced from the pyrolysis of organic substances has been in focus because it is promising for use in environmental cleanup. Despite the benefits of biochar, specifics of its use are associated with numerous problems such as feedstock selection, technologies used in its production, physiochemical properties, and impacts on the environment and economy can limit their application and/or effectiveness. The variability in the performance of biochar may be due to one of the biggest obstacle faced in the field applications of biochar, which is the inconsistency in feedstock sources, its nature and composition. And standardization is made more difficult due to the difference in porosity, surface area, capacity for contaminant adsorption, and nutrient content resulting from variety of feedstock. Even the physicochemical properties of biochar may be impacted by the conditions used in pyrolysis such as temperature, residence time, and heating rates. Environmental issues are also significant challenge for using biochar. Some biochars could cause soil and water pollution when the heavy metals, polycyclic aromatic hydrocarbon (PAHs), or other toxicants were released from the char and transported into other environmental compartments. A second major limitation is that biochar should still be economically feasible for the scale up of production and application. Commercial adoption is hindered by high cost of production, difficulty in transportation and distributions, and low market demand. Moreover, the long term impact of biochar on soil health and crop productivity is yet to be established through extensive field trials and studies to ascertain its effectiveness in various agroecosystems. Finally, as biochar offers a promising future in sustainable environmental and agricultural practices, it needs to address these hurdles in order to gain wider acceptance and application in real-world scenarios. The optimization of the production processes should be addressed in future research, evaluation of the long-term environmental impact and policies to encourage its adoption should be developed.