Taiwan is rich in forest resources. The forest products can be converted into energy, green chemicals and agricultural materials for wide application. The biochar from wood-based materials can be used in soil amendments, environmental protection and carbon sequestration. The main objectives of this study are to introduce the definition of biochar and its preparation methods, and to investigate the physical and chemical properties of biochar. The mechanisms of biochar added in the soil on plant growth are also reviewed in order to build a sustainable management forest in Taiwan through establishing re-use technology for woody biomass, and enhancing the utilization efficiency of domestic forest products.