This article comprehensively examines the role of biofertilizers, which are natural mixtures of beneficial microorganisms such as mycorrhizal fungi, phosphorus-solubilizing bacteria, and nitrogen-fixing bacteria, in improving the physical, chemical, and biological properties of soil. Biofertilizers enhance plant access to nutrients by establishing symbiotic relationships with plants, serving as a sustainable alternative to chemical fertilizers. They promote long-term soil health and reduce negative environmental impacts. The review findings indicate that biofertilizers significantly improve soil physical structure (e.g., water infiltration, aeration, and reduced erosion), enhance soil chemical properties (including nitrogen fixation, increased phosphorus and potassium availability, and higher organic carbon content), and strengthen soil biological characteristics (such as increased microbial diversity, pathogen suppression, and accelerated organic matter decomposition). These positive effects lead to increased soil fertility, enhanced plant disease resistance, and overall sustainability of agricultural systems. However, the widespread adoption of biofertilizers faces several challenges. These include limited understanding among farmers, a shortage of suitable carriers, inadequate storage facilities, and adverse effects of extreme weather conditions, which impact their consistent effectiveness. Furthermore, issues like insufficient labeling and the selective effects of some biofertilizer products also hinder their broader expansion. In conclusion, this study emphasizes that biofertilizers hold significant potential as a sustainable solution for increasing agricultural productivity and preserving soil health. To overcome existing challenges and fully harness their capabilities in fostering robust and sustainable agricultural ecosystems, continued research and education are essential