In this study, the aqueous photolytic degradation of the neonicotinoid pesticide clothianidin was studied in suspensions and aqueous extracts of hydrochar produced from olive kernels. A slight and nonsignificant decrease in the photodegradation rate of clothianidin in aqueous extracts of hydrochar (HCw) with an initial concentration of hydrochar ranged from 50 to 400 mg L−1 (rate constants ranged between k = 0.0034 and 0.0039 min−1) was observed in comparison to the respective rate in the bi-distilled water (k = 0.0040 min−1). On the contrary, in the presence of hydrochar suspensions (HCp), a significant decrease was observed for 50 mg L−1 hydrochar particle concentration (k = 0.020 min−1), while for higher concentrations (100 to 400 mg L−1), rate constants increased but with nonsignificant differences compared with the kinetics followed in the absence of them. Generally, the photodegradation rate of clothianidin, in the presence of HCw and HCp, is reduced compared to the photodegradation rate in bi-distilled aqueous solutions, except in the case of the aqueous suspension with an HCp concentration of 200 mg L−1. The transformation products (TPs) of clothianidin formed in the photolytic degradation processes were identified using ultrahigh-performance liquid chromatography coupled with accurate high-resolution mass spectrometry technique (UHPLC-LTQ-ORBITRAP). The formation profiles of TPs varied according to the matrix showing different degrees of participation of direct and indirect (photosensitized) phototransformation pathways. Photolytic degradation of clothianidin takes place mainly through denitration, hydroxylation and dechlorination pathways. Finally, the toxicity of the identified TPs was studied using the Vibrio fischeri bioassay. Toxicity was slightly reduced after 300 min of irradiation while maximum value was observed after 180–240 min of irradiation showing the formation of more toxic TPs along the photochemical degradation.