The global population is exceeding 8 billion and will reach up to 9.1 billion by 2050, and maintaining soil health is crucial for sustainable food production. Meeting the intensifying call for food, water, and shelter requires sustainable soil management strategies, where biochar emerges as a promising solution. To feed the continuously growing population, soil health is crucial. Utilization of agrochemicals in the field increases the fertility of soil, but prolonged use makes the soil polluted due to accumulation of chemicals. Similarly, improper management of crops leftover also contributes to air, water, and soil pollution along with greenhouse gas (GHG) emission. Through pyrolysis process, the crops leftover can be converted to a carbon-rich material known as biochar. Biochar is globally utilized for the enhancement of soil structure and fertility and is therefore promoting sustainable agriculture. The current book chapter deals with the preparation of biochar and its utilization. The chapter also focuses on the impacts of biochar on soil health and environmental stress mitigation. To fulfill the objective of the current study, a systematic search was conducted on different research platform, i.e., Scopus, Web of Science, Google Scholar, etc., for literature. The results of the current review unveil the potential of biochar in soil physicochemical and microbial properties’ improvement. Biochar also plays an important role in reducing the environmental stress by mitigating the concentration of GHG, absorbing heavy metals, and increasing the salinity tolerance capacity of soil. Varying physicochemical properties, lack of information about its long-term utilization, and cost are some of the main challenges faced on commercial application of biochar. The current book chapter will help researchers, agro-planners, and farmers to understand the biochar and its potential in the management of soil fertility and environmental stress globally.