BackgroundBiochar is an affordable carbonaceous product produced through a combination of thermochemical conversion processes using organic feedstock in the absence or constrained supply of oxygen. Biochar-based catalysts are promising in numerous catalytic applications for sustainable bioenergy production. MethodsHydrothermal carbonization, gasification, and pyrolysis are conventional biochar production techniques. The biochar must be activated to improve its physiochemical characteristics. The activation is generally classified into three types: physical, chemical, and impregnation. The biochar-based catalysts are categorized into different types, such as pristine, heteroatom-doped, metal-loaded, magnetic, and nanometallic oxide/hydroxide biochar. Significant findingsThese biochar-based catalysts effectively catalyze various biochemical reactions and are extensively used in biofuel production. This article extensively explores various biochar production and activation strategies and their applications as a catalyst for biofuel production. Activated biochar with improved surface properties has a high surface area and adaptable surface chemistry, making it a sustainable alternative to conventional catalysts. Biochar from renewable biomass has advantages in waste management, carbon sequestration, and reduced greenhouse gas emissions. Further research and innovation using nanomaterials, artificial intelligence, and machine learning are needed to utilize biochar as a sustainable and potential green catalyst for advanced biofuel production.