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Algae, as a low-impact aquatic feedstock, is regarded as a promising biomass for producing valuable biofuel, syngas, and biochar. Algae, on the other hand, are mostly composed of lipids, proteins, and carbohydrates, as opposed to lignocellulosic biomass. Algal species have a faster growth rate and higher photosynthetic efficiency than terrestrial plants, making them an excellent alternative for a sustainable environment. Algal biomass has shown great promise as a raw material for biochar production in recent years. Algae biochar has a high potential for use as a material for contamination remediation and energy application. This review paper summarizes the applicability of algal biochar, algal biochar modification strategies, fabrication methods, and algal biochar properties. Carbon sequestration, sediment and water treatment, and energy applications are all thoroughly discussed. More emphasis should be placed on practical applications, and more research should be conducted to address existing problems.