The investigations on the effects of biochar application in improving the physio-chemical properties of soil have been carried out in many studies; however, there are very few studies on the combined use of both biochar and clay-rich soil for poor nutrient soil reclamation. Therefore, this study demonstrates improved water retention and nutrient retention of sandy soil by using biochar and biochar combined with clay-rich soil. The experiments were conducted on a small scale (greenhouse) with nine different application rates of biochar and clay-rich soil were mixed and then cultivated peanut, along with the drip irrigation technique using field moisture limit (about 70-80%) was applied under the condition of ensuring a sufficient supply of NPK for plant’s growth. The results showed that at the rates from 10.0-15.0% (w/w) clay-rich soil mixed with from 0.5-1.5% (w/w) of biochar applied to the tested sandy soil resulted in the positive effects on soil water holding, bulk density, permeability, pH, CEC, OM, total N, total P and peanut yield. The physical and chemical characteristics of the tested sandy soil have been improved by time and the application rate of 10.0% clay-rich soil and 0.5% biochar had the highest efficiency of pod fresh weight and pod dry weight during three studied seasons.