The permanent problem of formation of algal blooms in water polluted with nitrogen and phosphorus is one of the formidable environmental problems. Biochar has the potential to solve the issues related to eutrophication due to its special structure and ability to absorb the nutrients. Biochar's exceptional nutrient absorption capacity allows it to absorb excess nutrients, causing the algae to use fewer nutrients. This review deals with effective performance of biochar in reducing the effects caused by algal blooms and improving the environmental conditions. Besides, an analysis of the issues involved addresses the origins and consequences of nitrogen and phosphorus pollution, and the formation of algal blooms is also reviewed. It then delves deeply into biochar, explaining its properties, production methods, and their uses in environmental contexts. The review emphasizes that biochar can be effective in dealing with many challenges associated with environments affected by algal blooms, specifically focusing on the positive effects of biochar and algae to examine their roles in controlling algae growth. Finally, the review emphasizes new achievements and innovative ideas to foster sustainable aquatic ecosystems. The discussions emphasize the central role of biochar in managing nutrient-rich waters and algal blooms.