Biochar, a carbon-rich material produced from the pyrolysis of organic biomass, has gained significant attention as a potential solution for sustainable green remediation practices. Several studies analyze biomass-derived biochar techniques and environmental applications, but comprehensive assessments of biochar limitations, uncertainty, and future research directions still need to be improved. This critical review aims to present a comprehensive analysis of biochar's efficacy in environmental applications, including soil, water, and air, by sequentially addressing its preparation, application, and associated challenges. The review begins by delving into the diverse methods of biochar production, highlighting their influence on physical and chemical properties. This review explores the diverse applications of biochar in remediating contaminated soil, water, and air while emphasizing its sustainability and eco-friendly characteristics. The focus is on incorporating biochar as a remediation technique for pollutant removal, sequestration, and soil improvement. The review highlights the promising results obtained from laboratory-scale experiments, field trials, and case studies, showcasing the effectiveness of biochar in mitigating contaminants and restoring ecosystems. The environmental benefits and challenges of biochar production, characterization, and application techniques are critically discussed. The potential synergistic effects of combining biochar with other remediation methods are also explored to enhance its efficacy. A rigorous analysis of the benefits and drawbacks of biochar for diverse environmental applications in terms of technical, environmental, economic, and social issues is required to support the commercialization of biochar for large-scale uses. Finally, future research directions and recommendations are presented to facilitate the development and implementation of biochar-based, sustainable green remediation strategies.