Modern agriculture is leading mining of nutrients and reduction in soil organic matter levels through repetitive harvesting of crops. Soil health is the foundation of vigorous crop productivity with higher opportunity for income and employment which in turn provides sustainable food system. Soil health management forms the productive agriculture and crop residue burning has high impact on it. Declining fertility status of soil is now becoming primary concern for growing of the crops. Farmers usually burn excess residues in the field for easy preparation for planting next crop. This unidentified loss of nutrients from biomass moreover also release toxic as well as greenhouse gases into the atmosphere. Converting waste biomass into biochar would transfer very significant amounts of carbon from the active to inactive carbon pool, presenting a compelling opportunity to intervene in the carbon cycle. “Biochar” may be added to soils with the intention to improve the soil health, improve soil fertility, and sequester carbon. Biochar is a carbon-enriched biomaterial generated in the combustion of biomass through a process called pyrolysis. In pyrolysis, biomass is decomposed at temperatures higher than 400°C, in the complete or near absence of oxygen. Which turns biochar as a useful produce and using it as soil amendment, an alternative to composting and crop residue burning. It is a fine-grained charcoal, high in organic carbon and largely resistant to decomposition. Biochar is the carbon rich product and its application to soil have beneficial effect on crop productivity through increased nutrient use efficiency, increased water holding capacity and decreased bulk density. It is well known that the quantity, quality and distribution of soil amendments affect the structure of the soil. Energy from crop residues could lower fossil energy consumption and CO2 emissions, and become a completely new income source for farmers and rural regions.