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With the rapid growth in the global population and the accelerating pace of urbanization, researching and developing novel strategies for biomass utilization is significant due to its potential for use in renewable energy, climate change mitigation, waste management, and sustainable agriculture. In this environmental context, this review discusses the recent advances in biomass conversion technologies for biochar production, including the first carbonization process and the subsequent activation methods of the biochar derived from lignocellulosic biomass (LBC). Parallel to this, this review deals with other essential parameters in biochar production, such as feedstock types, reaction environments, and operating conditions in the pyrolysis process, to determine the production and composition of LBC. Moreover, the wide-ranging applications of LBC in areas such as adsorption, catalysts, and energy storage are discussed, offering sustainable and environmentally friendly alternatives while reducing reliance on traditional energy sources and mineral resources, thereby providing practical solutions to environmental and energy challenges. Overall, this review not only provides a comprehensive comparative analysis of different LBC preparation methods, but also facilitates a deeper understanding of the advantages and limitations of these methodologies when it comes to developing high-value materials for sustainable applications.