The greatest challenge for the agriculture sector in the twenty-first century is to increase agricultural production to feed the burgeoning global population while maintaining soil health and the integrity of the agroecosystem. Currently, the application of biochar is widely implemented as an effective means for boosting sustainable agriculture while having a negligible influence on ecosystems and the environment. In comparison to traditional biochar, nano-biochar (nano-BC) boasts enhanced specific surface area, adsorption capacity, and mobility properties within soil, allowing it to promote soil properties, crop growth, and environmental remediation. Additionally, carbon sequestration and reduction of methane and nitrous oxide emissions from agriculture can be achieved with nano-BC applications, contributing to climate change mitigation. Nonetheless, due to cost-effectiveness, sustainability, and environmental friendliness, waste-derived nano-BC may emerge as the most viable alternative to conventional waste management strategies, contributing to the circular bioeconomy and the broader goal of achieving the Sustainable Development Goals (SDGs). However, it's important to note that research on nano-BC is still in its nascent stages. Potential risks, including toxicity in aquatic and terrestrial environments, necessitate extensive field investigations. This review delineates the potential of waste-derived nano-BC for sustainable agriculture and environmental applications, outlining current advancements, challenges, and possibilities in the realms from a sustainability and circular bioeconomy standpoint.