Abstract This study investigates the impact of low-temperature top-lit updraft reactor chamber size on GNSBC yield and properties. For this study, the volumes of carbonization chamber (2,364, 2,013, 1,468, and 970 cm3) in a biomass-fueled TLUD biomass gasifier were varied, and the resulting biochar was analyzed using SEM, EDX, and FTIR. The novelty of this work lies in its investigation of the unexplored impact of carbonization reactor compartment size on groundnut shell biochar properties and yield, driven by the need to optimize biochar production efficiency and support sustainable waste management practices. The results showed that carbonization chamber size variation significantly affected GNSBC yield, with an initial increase followed by diminishing returns. An increase in the carbonization compartment size led to decreased carbonization duration, increased carbonization temperature, increased porosity, and decreased oxygen content. SEM analysis revealed consistent amorphous and multi-layered morphological features across BC samples, while EDX analysis confirmed high carbon content in the samples. FTIR spectroscopy confirmed the presence of oxygenated functional groups suitable for pollutant adsorption, supporting GNSBC’s role in environmental remediation and industrial processes. This research contributes to optimizing biochar production efficiency, advancing circular economy goals, and sustainable waste management practices.