This study explores the catalytic activity of biochar materials derived from seaweed biomass (Capsosiphon fulvescens) for groundwater treatment. A facile pyrolysis process was utilized to prepare C. fulvescens biochar (CFBCX), where X represents the pyrolysis temperature. The instrumental analysis using surface characterization techniques revealed that CFBC800 inherently contained heteroatoms (N, P) and a trace metal (Fe) in the biochar. The adsorption kinetics and isotherm experiments depicted a mixed mechanism of physical and chemical adsorption of SDZ on CFBC. Consequently, in optimal conditions with 2 mM peroxydisulfate (PDS), 200 mg L−1 CFBC800, and 6.1 initial solution pH, SDZ degradation (>97.2%) is achieved within 60 min. Chemical quenching tests indicate the involvement of radical (O2•– = 41.6%) and non-radical processes, including electron transfer (58.4%), in the PDS/CFBC800 system. The electron spin resonance spectroscopy confirmed the formation of reactive oxygen species (ROS) in the PDS/CFBC800 system, including radical (O2•–, SO4•–, and HO•) and non-radical (1O2) species. Furthermore, electrochemical studies demonstrated the existence of an electron transfer pathway in the non-radical process of the PDS/CFBC800 system. Based on chemical scavenger and ESR analyses, the PDS/CFBC800 system exhibited both radical and non-radical mechanisms, with the electron transfer pathway being more dominant in this catalytic system. The excellent catalytic activity of the PDS/CFBC800 system toward co-existing ions and various organic contaminant degradation is demonstrated. Moreover, the CFBC800-activated PDS system successfully demonstrated catalyst reusability in SDZ degradation. Thus, this study establishes CFBC800 as an ecofriendly catalyst with remarkable catalytic activity for groundwater remediation.