A number of experts have conducted in-depth research on the promising substance known as activated carbon (AC). Low-cost AC has distinct qualities like high specific surface area, high porosity, and desired surface functionalization. Due to its many useful applications in adsorption, pollution removal, water treatment, food additives, etc., AC is widely employed. Activated charcoal is now widely used for successful treatment for a variety of ailments. Because of its teeth-whitening ability, it is used in toothpaste, and because of its capacity to absorb pollutants, it is utilized in beauty products. However, adding AC to meals is one of the most effective ways people use it. It prevents the body from absorbing it and traps poisons and chemicals in the gut. In this regard, an outline of AC is provided along with a review of the sources of AC. Additionally, the techniques utilized to generate AC—physical, physicochemical, carbonization/pyrolysis, and microwave-assisted activation—are elucidated. The key elements influencing the manufacturing of AC, potential uses of AC, and their prospects for the future are also covered.