Activated carbon (AC) prepared by using biomass has recognized as one of the most promising alternative of producing AC in contrast to traditional methods, because it has environmental friendly nature and economical as well. This review paper provides an overview of various biomass sources used for AC synthesis, as well as the various methods of preparations for the production of activated carbon, such as physiochemical and chemical activation. Activated carbon properties like pore size distribution; surface area and surface chemistry were also discussed. Additionally, the potential applications of AC in treating water, such as adsorption of contaminants including heavy metals, pesticides, pharmaceutical compounds, and organic and inorganic compounds, were also reviewed. The advantages of using biomass-derived AC in water treatment include its high adsorption capacity, low cost, and sustainability. Finally, the challenges and future prospective in biomass-derived AC have explored.