Biochar is an ample source of organic carbon prepared by the thermal breakdown of biomass. Lignocellulosic biomass is a promising precursor for biochar production, and has several applications in various industries. In addition, biochar can be applied for environmental revitalization by reducing the negative impacts through intrinsic mechanisms. In addition to its environmentally friendly nature, biochar has several recyclable and inexpensive benefits. Nourishing and detoxification of the environment can be undertaken using biochar by different investigators on account of its excellent contaminant removal capacity. Studies have shown that biochar can be improved by activation to remove toxic pollutants. In general, biochar is produced by closed-loop systems; however, decentralized methods have been proven to be more efficient for increasing resource efficiency in view of circular bio-economy and lignocellulosic waste management. In the last decade, several studies have been conducted to reveal the unexplored potential and to understand the knowledge gaps in different biochar-based applications. However, there is still a crucial need for research to acquire sufficient data regarding biochar modification and management, the utilization of lignocellulosic biomass, and achieving a sustainable paradigm. The present review has been articulated to provide a summary of information on different aspects of biochar, such as production, characterization, modification for improvisation, issues, and remediation have been addressed. Display omitted •Emerging researches on toxic pollutants removal using biochar has been addressed.•Advanced techniques on biochar production have been articulated.•Obligated properties of biochar for environmental applications have been discussed.•Biochar amendments on ameliorating the soil fertility have been analyzed.•Crucial stumbling block for production and application of biochar were reported.