The review examines the impacts of biochar (BC) on soil water dynamics, highlighting its potential to enhance soil structure, hydraulic properties, surface albedo, and heat fluxes. BC generally reduces bulk density and saturated hydraulic conductivity in coarse-textured soils, increases water holding capacity (WHC), and exhibits no consistent impact on soil water infiltration. The increased WHC results from increased porosity, surface area, and soil aggregation. BC can increase plant-available water in coarser soils due to its hydrophilic nature and enhanced porosity, but it may induce soil water repellency depending on feedstock composition, pyrolysis temperature, and soil attributes. While BC shows promise in improving soil hydraulic properties, scalability concerns and economic viability pose challenges to widespread agricultural application. The review emphasizes the need for large-scale applications and long-term field studies to fully understand how different types of BC impact soil water dynamics. Key research gaps include the effects of BC on soil thermal properties, albedo, and heat fluxes, as well as the long-term impacts on soil water retention and crop yields.The review examines the impacts of biochar (BC) on soil water dynamics, highlighting its potential to enhance soil structure, hydraulic properties, surface albedo, and heat fluxes. BC generally reduces bulk density and saturated hydraulic conductivity in coarse-textured soils, increases water holding capacity (WHC), and exhibits no consistent impact on soil water infiltration. The increased WHC results from increased porosity, surface area, and soil aggregation. BC can increase plant-available water in coarser soils due to its hydrophilic nature and enhanced porosity, but it may induce soil water repellency depending on feedstock composition, pyrolysis temperature, and soil attributes. While BC shows promise in improving soil hydraulic properties, scalability concerns and economic viability pose challenges to widespread agricultural application. The review emphasizes the need for large-scale applications and long-term field studies to fully understand how different types of BC impact soil water dynamics. Key research gaps include the effects of BC on soil thermal properties, albedo, and heat fluxes, as well as the long-term impacts on soil water retention and crop yields.