Biochar obtained from the thermal conversion of biomass has high potential as a substitute material for activated carbon and other carbon-based materials because it is economical, environmentally friendly, and carbon-neutral. The physicochemical properties of biochar can also be controlled by a range of activation methods such as physical, chemical, and hydrothermal treatments. Activated biochar can be used as a catalyst for the catalytic pyrolysis of a biomass and as an absorbent for the removal of heavy metal ions and atmospheric pollutants. The applications of biochar are also expanding not only as a key component in producing energy storage materials, such as supercapacitors, lithium ion batteries, and fuel cells, but also in carbon capture and storage. This paper reviews the recent progress on the activation of biochar and its diverse present and future applications.