Biochar is produced by pyrolysis of biological residues. It has a high porosity and high carbon content. Typically biochars have relatively large surface areas and cation exchange capacities. Therefore, biochars can strongly adsorb heavy metals and organic pollutants, and reduce their mobility and bioavailability in contaminated soils. In recent years, soil contamination has become a serious problem in China. Use of biochar as a soil amendment for remediation of contaminated soils has attracted considerable attention. This paper provides an overview on the recent advances in the research and development of using biochar for remediation of contaminated soils, its underlying mechanisms, and the advantages and disadvantages associated with this technology. Further research directions are proposed to ensure a sustainable use of biochar as an amendment for remediation of contaminated soils.