A biofertilizer is a biologically derived substance that can enhance soil fertility. It is beneficial for enhancing soil fertility by introducing microorganisms that produce organic nutrients and perhaps decreasing plant illnesses. An extensive review was done to examine the efficacy of several biofertilizers in improving soil properties, including their physical, chemical, and biological characteristics. The secondary data and material for the article were gathered from a variety of sources, including government reports, published research papers, reports from various organizations, and pertinent websites that were examined and their conclusions presented. Although biofertilizers have proven to be a very sustainable method for improving soil quality and increasing crop output, there is a lack of extensive research on their effects on soil’s physical, chemical, and biological aspects. This study aims to offer a comprehensive understanding of various biofertilizers and their effects. This investigation indicated that biofertilizers such as Nitrogen-fixing bacteria, phosphate solubilizers, and potassium solubilizers help to increase NPK content in the soil leading to an increase in the productivity of soil. Moreover, biofertilizers help to enhance soil physical properties (soil bulk density, soil moisture, soil temperature, and soil color), chemical properties (soil pH, soil nitrogen content, soil phosphorus content, soil potassium content, and soil organic carbon content), and chemical properties (population of bacteria, fungi, and actinomycetes). Overall, by overcoming the challenges with biofertilizers in agriculture, we can attain agricultural sustainability.