Anaerobic digestion technology is crucial in bioenergy recovery and organic waste management. At the same time, it often encounters challenges such as low organic digestibility and inhibition of toxic substances, resulting in low biomethane yields. Biochar has recently been used in anaerobic digestion to alleviate toxicity inhibition, improve the stability of anaerobic digestion processes, and increase methane yields. However, the practical application of biochar is limited, for the properties of pristine biochar significantly affect its application in anaerobic digestion. Although much research focuses on understanding original biochar's fundamental properties and functionalization, there are few reviews on the applications of functional biochar and the effects of critical properties of pristine biochar on anaerobic digestion. This review systematically reviewed functionalization strategies, key performances, and applications of functional biochar in anaerobic digestion. The properties determining the role of biochar were reviewed, the synthesis methods of functional biochar were summarized and compared, the mechanism of functional biochar was discussed, and the factors affecting the function of functional biochar were reviewed. This review provided a comprehensive understanding of functional biochar in anaerobic digestion processes, which would be helpful for the development and applications of engineered biochar.