[Objective] The approach of reducing chemical fertilizer usage while increasing the application of organic materials is a common strategy for maintaining optimal crop yields and preserving soil ecological functions. Biochar, as a carbon-rich, alkaline, and porous byproduct produced from biomass pyrolysis, has great potential in soil biodiversity restoration and soil health improvement in acidic red soil areas. [Method] This study conducted a 2×3 full factorial interactive design experiment in red soil cultivated with sweet potato-rapeseed in subtropical arid areas. The experiment involved the application of organic materials (control without organic material application, straw, and biochar) and two fertilizer application rates (full dose of NPK fertilizer and reduced dose of 60% NPK fertilizer), totaling six treatments. The aim was to investigate the impact of biochar application on nematode communities in upland red soils and to understand the underlying mechanisms after five years of application. [Result] The results indicated that under full chemical fertilizer application, the use of biochar significantly increased the abundance of bacterivores and the ratio of microbivores to herbivores, reduced the root-to-shoot ratio of sweet potatoes and soil soluble organic carbon, and increased soil mineral nitrogen. Under reduced chemical fertilizer application, compared to the control and straw application, biochar significantly increased the abundance of total nematode, bacterivorous, herbivorous, and omnivorous predators. Simultaneously, it increased the sweet potato root biomass, root-to-shoot ratio, and soil pH but significantly decreased soil mineral nitrogen. By analyzing the relationship between soil nematode communities and plant growth as well as soil properties, it was evident that the application of biochar in combination with reduced chemical fertilizer led to a reduction in soil nutrient availability, thus nutrient limitation prompted plants to allocate more photosynthetic products below ground, resulting in increased crop root biomass and the abundance of herbivores. [Conclusion] This study suggests that under the background of reducing chemical fertilizer and increasing the application of organic materials in China, soil fertilization practices combining biochar application with reduced chemical fertilizer should take into comprehensive consideration the potential adverse effects of nutrient deficiency on crop growth.