Molecular mechanisms associated with biochar-elicited suppression of soilborne plant diseases and improved plant performance are not well understood. A stem base inoculation approach was used to explore the ability of biochar to induce systemic resistance in tomato plants against crown rot caused by a soilborne pathogen, Fusarium oxysporum f. sp. radicis lycopersici. RNA-seq transcriptome profiling of tomato, and experiments with jasmonic and salycilic acid deficient tomato mutants, were performed to elucidate the in planta molecular mechanisms involved in induced resistance. Biochar (produced from greenhouse plant wastes) was found to mediate systemic resistance against Fusarium crown rot and to simultaneously improve tomato plant growth and physiological parameters by up to 63%. Transcriptomic analysis (RNA-seq) of tomato demonstrated that biochar had a priming effect on gene expression and upregulated the pathways and genes associated with plant defense and growth such as jasmonic acid, brassinosteroids, cytokinins, auxin and synthesis of flavonoid, phenylpropanoids and cell wall. In contrast, biosynthesis and signaling of the salicylic acid pathway was downregulated. Upregulation of genes and pathways involved in plant defense and plant growth may partially explain the significant disease suppression and improvement in plant performance observed in the presence of biochar.