Biochar amendments can modify soil microbial communities and extracellular enzyme activities, but reported responses remain heterogeneous across soils, biochar types, and management contexts. This review critically synthesises current evidence to identify the conditions under which microbial and enzymatic responses to biochar are most likely. A structured literature search in Web of Science and Scopus was combined with citation tracking of key reviews, meta-analyses, and mechanistic studies. Evidence was synthesised qualitatively, with emphasis on microbial biomass, bacterial and fungal diversity, extracellular enzyme activities, and links with broader soil functions. Microbial biomass carbon responds more consistently to biochar than diversity metrics. Bacterial community composition often shifts, especially in acidic, coarse textured, nutrient-poor, or otherwise constrained soils, whereas fungal responses are more variable. Potential activities of C-, N-, and P-cycling enzymes are commonly neutral to moderately positive, but interpretation is complicated by assay artefacts, substrate sorption, and co-varying changes in soil pH, nutrient availability, moisture, and microhabitat structure. Evidence supports recurring response windows, defined by combinations of baseline soil constraints, biochar functional traits, application context, and time since application. Biochar effects on soil biological functioning are best interpreted through boundary conditions rather than universal mean responses. Benefits are most predictable when biochar properties are matched to site-specific constraints, whereas risks mainly arise from very high application rates, poorly characterised materials, or mismatched biochar–soil combinations.