Drought stress (DS) is a potential abiotic stress that is substantially reducing crop productivity across the globe. Likewise, salinity stress (SS) is another serious abiotic stress that is also a major threat to global crop productivity. The rapid climate change increased the intensity of both stresses which pose a serious threat to global food security; therefore, it is urgently needed to tackle both stresses to ensure better crop production. Globally, different measures are being used to improve crop productivity under stress conditions. Among these measures, biochar (BC) has been widely used to improve soil health and promote crop yield under stress conditions. The application of BC improves soil organic matter, soil structure, soil aggregate stability, water and nutrient holding capacity, and the activity of both beneficial microbes and fungi, which leads to an appreciable increase in tolerance to both damaging and abiotic stresses. BC biochar protects membrane stability, improves water uptake, maintains nutrient homeostasis, and reduces reactive oxygen species production (ROS) through enhanced antioxidant activities, thereby substantially improving tolerance to both stresses. Moreover, BC-mediated improvements in soil properties also substantially improve photosynthetic activity, chlorophyll synthesis, gene expression, the activity of stress-responsive proteins, and maintain the osmolytes and hormonal balance, which in turn improve tolerance against osmotic and ionic stresses. In conclusion, BC could be a promising amendment to bring tolerance against both drought and salinity stresses. Therefore, in the present review, we have discussed various mechanisms through which BC improves drought and salt tolerance. This review will help readers to learn more about the role of biochar in causing drought and salinity stress in plants, and it will also provide new suggestions on how this current knowledge about biochar can be used to develop drought and salinity tolerance.