Every year the agricultural product processing industries produce large quantities of agricultural waste biomass (AWB). Whose disposal has become a serious issue concerning solid waste management due to environmental and health issues. Microwave-assisted pyrolysis (MAP) is an intriguing technology for producing valuable products from waste feedstocks. AWB is converted into a valuable product like biochar by using MAP. The conversion of AWB into biochar by MAP is influenced by several factors such as type of feedstock, pyrolysis temperature, residence time, pressure, heating rate, susceptor, particle size, and microwave power. However, no review article is available to understand the role of MAP on biochar production from AWB. The current review focused on understanding the fundamentals of biochar production. It also reviews the challenges in producing biochar process by compatible, acceptable, and sustainable and its future directions to gain economic benefits even at small-scale applications. The generation of biochar from MAP and its uses in agriculture are discussed. The current review would address the knowledge gap and highlight the critical implications in biochar production and applications.