The study aimed to investigate the effects of biochar (BC) application on hydraulic properties and nitrogen (N) transport in a podzolic soil profile. Soil samples were collected from an agricultural research field in Pasadena, Newfoundland, Canada. The following three types of leaching columns were prepared: (i) topsoil, (ii) top and E-horizon soil, and (iii) mixed soil (2:1 ratio of topsoil and E-horizon soil). Granular biochar (GBC) and powder biochar (PBC) were mixed with soils at the rate of 0%, 1% and 2% (w/w). BC’s morphological structure and pore size distribution were examined using a scanning electron microscope, and the specific surface area was assessed by the Brunauer−Emmett−Teller method. Soil physical and hydraulic properties (bulk density, porosity, field capacity (FC), permanent wilting point, plant available water (PAW)), leaching concentration of nitrate (NO₃⁻) and ammonium (NH₄⁺), and volume of leachate were measured through a total of 378 experiments under laboratory conditions. GBC and PBC showed hydrophobic and hydrophilic characteristics, respectively. With the 2% PBC amendment, porosity increased by 3%, FC by 10%, and PAW by 13% in the mixed soil and reduced NO₃⁻ leaching by 36% in top and E-horizon soil and NH₄⁺ leaching by 72% in mixed soil. On the other hand, NO₃⁻ and NH₄⁺ leaching was reduced by 26% and 33% in mixed soil when treated with 2% GBC. A 2% application rate for both BC (GBC and PBC) showed the best performance to enhance soil hydraulic properties and retain significant amounts of NO₃⁻ and NH₄⁺ in the boreal podzol.