Seed germination and stand establishment are the first steps of crop growth and development. However, low seed vigor, improper seedbed preparation, unfavorable climate, and the occurrence of pests and diseases reduces the germination rate and seedling quality, resulting in insufficient crop populations and undesirable plant growth. Seed coating is an effective method that is being developed and applied in modern agriculture. It has many functions, such as improving seed vigor, promoting seedling growth, and reducing the occurrence of pests and diseases. Yet, during seed coating procedures, several factors, such as difficulty in biodegradation of coating materials and hindrance in the application of chemical ingredients to seeds, force us to explore reliable and efficient coating formulations. Biochar, as a novel material, may be expected to enhance seed germination and seedling establishment, simultaneously ensuring agricultural sustainability, environment, and food safety. Recently, biochar-based seed coating has gained much interest due to biochar possessing high porosity and water holding capacity, as well as wealthy nutrients, and has been proven to be a beneficial agent in seed coating formulations. This review presents an extensive overview on the history, methods, and coating agents of seed coating. Additionally, biochar, as a promising seed coating agent, is also synthesized on its physico-chemical properties. Combining seed coating with biochar, we discussed in detail the agricultural applications of biochar-based seed coating, such as the promotion of seed germination and stand establishment, the improvement of plant growth and nutrition, suitable carriers for microbial inoculants, and increase in herbicide selectivity. Therefore, this paper could be a good source of information on the current advance and future perspectives of biochar-based seed coating for modern agriculture.