Biochar is a massively produced by-product of biomass pyrolysis to obtain renewable energy and has not been fully used. Incomplete separation of sludge and effluent and insufficient denitrification of sewage are two of main factors that influence the efficiency of activated sludge process. In this work, we proposed a new utilization of biochar and investigated the effect of biochar addition on the performance of settleability and denitrification of activated sludge. Results show that the addition of biochar can improve the settleability of activated sludge by changing the physicochemical characteristics of sludge (e.g., flocculating ability, zeta-potential, hydrophobicity, and extracellular polymeric substances constituents). Moreover, the dissolved organic carbon released from biochar obtained at lower pyrolysis temperature can improve the nitrate removal efficiency to a certain extent.