Rice, a staple food for over half of the global population, faces significant threats from environmental stressors such as heavy metal (HMs) contamination, notably cadmium (Cd) and arsenic (As), and increasing drought severity, exacerbated by climate change. These challenges not only compromise rice yield and quality but also pose serious food safety risks due to HM accumulation in grains, endangering human health. Modified biochar (MBC), a carbon-rich material derived from the pyrolysis of organic matter with post-treatment enhancements, has emerged as a strategy to address these dual stressors. MBC application (typically 5–20 t ha⁻¹) reduces Cd and As bioavailability in paddy soils by 40–60% and decreases metal accumulation in rice grains by 20–85% compared to the control. Under drought conditions, MBC improves soil water-holding capacity by 11–45% and enhances crop water use efficiency by 15–24%, leading to yield improvements of 20–50% under moderate water deficit. Furthermore, MBC supports nutrient availability, fosters robust root systems, and enhances soil aeration, collectively improving rice growth under adverse conditions. Beyond its agronomic benefits, MBC provides a framework for addressing multiple challenges by integrating scientific innovation, policy alignment, and community participation. This approach not only reduces heavy metal toxicity and strengthens plant resilience but also enhances food security and advances Sustainable Development Goals (SDGs 2, 3, 4, 12, 13, 15, 17). By promoting environmentally sustainable agriculture and contributing to climate change mitigation, MBC represents a transformative tool for ensuring sustainable rice production in the face of global challenges.