Magnetic biochar (MBC) is a novel bio-carbon material with both desired properties as adsorbent and magnetic characteristics. This review provides an up-to-date summary and discussion on the latest development of MBC, which covers the progress on its synthesis, application, and techno-economic analysis. The review indicates that the direct hydrothermal synthesis has been catching more research attention to produce MBC due to its mild reaction conditions. Instead of the Fe-loaded MBC, there is a trend of using Mn for the magnetization. For the MBC application, how to improve its adsorption performance for water decontamination, ideally to match that of the biochar (BC) or activated carbon, is important. In addition, more studies on the environmental impacts of MBC and life-cycle assessment decoding the process optimization options are necessary. This review will provide valuable references for the development of MBC and MBC-based materials for wastewater treatment.