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Hydrothermal carbonization (HTC) is a prominent thermochemical technology that can convert high-moisture waste into a valuable product (called hydrochar) at a relatively mild treatment condition (180–260 °C and 2–10 MPa). With rapidly growing research on HTC and hydrochar in recent years, review articles addressing the current and future direction of this research are scarce. Hence, this article aims to review various emerging applications of hydrochars, e.g., from solid fuel to soil amendment, from electron storage to hydrogen storage, from dye adsorption, toxin adsorption, heavy metal adsorption to nutrient recovery, and from carbon capture to carbon sequestration, etc. This article further provides an insight in the hydrochar’s working mechanism for various applications and how the applications can be improved through chemical modification of the hydrochar. Finally, new perspectives with appropriate recommendations have been made to further unveil potential applications and its improvement through hydrochar and its modified version.