Biochar has been reported to improve soil quality and crop yield; however, less is known about its effects on the physical and, in particular, structural properties of soil. This study examines the potential ability of biochar to improve water retention and crop growth through a pot trial using biochar concentrations of 0%, 1·5%, 2·5% and 5% w/w. X-ray computed tomography was used to measure soil structure via pore size characteristics; this showed that pore size is significantly affected by biochar concentration. Increasing biochar is associated with decreasing average pore size, which we hypothesise would impact heavily on hydraulic performance. At the end of the experiment, average pore size had decreased from 0·07 mm2 in the 0% biochar soil to 0·046 mm2 in the 5% biochar soil. Increased biochar concentration also significantly decreases saturated hydraulic conductivity and soil bulk density. It was also observed that increased biochar significantly decreases soil water repellency. Increased water retention was also observed at low matric potentials, where it was shown that increased biochar is able to retain more water as the soil dried out. The application of biochar had little effect on short-term (<10 weeks) wheat growth, but did improve water retention through a change in soil porosity, pore size, bulk density and wetting ability.