Bio-char is a charcoal-like substance made through the pyrolysis of organic biomass. It has the potential to address issues related to agriculture and the environment. This thorough analysis examines the potentials of bio-char in Ethiopia to enhance crop productivity, reduce climate change, and improve soil fertility. Drawing from academic databases and peer-reviewed literatures, the review explores the production and characterization of bio-char, its impact on soil fertility and crop productivity, and its role in carbon sequestration and greenhouse gas mitigation. The review emphasizes on how bio-char may improve plant nutrition and soil fertility, which raises agricultural yields and quality while improving drought resistance. The review also emphasizes the potential of bio-char for greenhouse gas mitigation and carbon sequestration, enhancing Ethiopia's efforts to mitigate climate change. Yet the study also points out several challenges and opportunities that need to be addressed to allow Ethiopians to use bio-char technology on a large scale. These include the need for appropriate policy and regulatory frameworks, the availability and accessibility of bio-char feedstocks, and the importance of continued research and development to optimize production methods and application strategies. The review concludes by highlighting the groundbreaking potential of bio-char in promoting environmentally friendly agricultural practices and sustainable agriculture in Ethiopia. It necessitates a coordinated effort to solve the problems and grasp the opportunities by making sound decisions in policy integration, research, and development. Ethiopia can advance its sustainable development goals by using bio-char to create a road towards increased food security, healthy soil, and environmental resilience.