The role of modified biochar in enhancing phosphorus (P) availability is gaining attention as an environmentally friendly approach to address soil P deficiency, a global agricultural challenge. Traditional phosphatic fertilizers, while essential for crop yield, are costly and environmentally detrimental owing to P fixation and leaching. Modified biochar presents a promising alternative with improved properties such as increased porosity, surface area, and cation exchange capacity. This review delves into the variability of biochar properties based on source and production methods and how these can be optimized for effective P adsorption. By adjusting properties such as pH levels and functional groups to align with the phosphate’s zero point of charge, we enhance biochar’s ability to adsorb and retain P, thereby increasing its bioavailability to plants. The integration of nanotechnology and advanced characterization techniques aids in understanding the structural nuances of biochar and its interactions with phosphorus. This approach offers multiple benefits: it enables farmers to use phosphorus more efficiently, reducing the need for traditional fertilizers and thereby minimizing environmental impacts, such as greenhouse gas emissions and P leaching. This review also identifies existing research gaps and future opportunities for further biochar modifications. These findings emphasize the significant potential of modified biochar in sustainable agriculture.