'Biochar' represents an emerging technology that is increasingly being recognized for its potential role in carbon sequestration, reducing greenhouse gas emissions, waste management, renewable energy, soil improvement, crop productivity enhancement and environmental remediation. Published reviews have so far focused mainly on the above listed agronomic and environmental benefits of applying biochar, yet paid little or no attention to its harmful effects on the ecological system. This review highlights a balanced overview of the advantages and disadvantages of the pyrolysis process of biochar production, end-product quality and the benefits versus drawbacks of biochar on: (a) soil geochemistry and albedo, (b) microflora and fauna, (c) agrochemicals, (d) greenhouse gas efflux, (e) nutrients, (f) crop yield, and (g) contaminants (organic and inorganic). Future research should focus more on the unintended long-term consequences of biochar on biological organisms and their processes in the soil.