Biochar is a carbon-based substance made by the pyrolysis of organic waste. The amount of biochar produced is determined by the type of feedstock and pyrolysis conditions. Biochar is frequently added to the soil for various reasons, including carbon sequestration, greenhouse gas mitigation, improved crop production by boosting soil fertility, removing harmful contaminants, and drought mitigation. Biochar may also be used for waste management and wastewater treatment. Biochar’s various advantages make it a potentially appealing instrument material for current science and technology. Although biochar’s impacts on soil chemical qualities and fertility have been extensively researched, little is known about its impact on enhancing soil physical qualities. This review is intended to describe biochar’s influence on some crucial soil physical and hydrological properties, including bulk density of soil, water holding capacity, soil porosity, soil hydraulic conductivity, soil water retention, water repellence–available plant water, water infiltration, soil temperature, soil color, and surface albedo. Therefore, we propose that the application of biochar in soils has considerable advantages, and this is especially true for arable soils with low fertility.