Wastewater is now becoming an emerging issue in the world with the increase in population. Treatment of wastewater results in increased sewage sludge production which consists of over 80% moisture content, making it a big problem for treatment. Only China is currently producing over 13 million tons of municipal sewage sludge (MSS) every year to treat municipal wastewater. The MSS and industrial sewage sludge (ISS) are hazardous as its potentially toxic elements like heavy metal(oids)s, organic pollutants like polycyclic aromatic hydrocarbons (PAHs), Persistent organic pollutants (POPs), sometimes known as “forever chemicals” and pathogens including viral, bacterial, protozoan, fungal, and helminth pathogens. Currently used technologies for reducing the volume of sewage sludge, e.g., land filling, composting, etc., are not promising because of their side effects on plant, soil, human as well as on environment. The sewage sludge usage as a raw material for biochar production is gaining popularity in the scientific community as a better treatment strategy that benefits both the soil and plants. The sludge-derived biochar (SDBC) reduced the risks associated with its direct application to soil. This biochar decreases the heavy metals leaching to the ground water and additionally enhances the soil’s physical and chemical properties. Nutrients present in sewage sludge-derived biochar provide better growth conditions for plants. This approach results in a reduced volume of sewage sludge, providing benefits to soil and plants and turning waste into beneficial products, and could be an eco-friendly, low-cost strategy for sewage sludge management. This chapter explored the possibilities of sewage sludge-derived biochar and their environmental implications.