Carbon farming is a capable strategy for more sustainable production of food and other related products. It seeks to produce the diverse array of natural farming methods and marketable products simultaneously. In agroforestry system, carbon sequestration is done by incorporating carbon dioxide (CO2) into plant biomass via photosynthesis. Carbon is, thus, stored in reserves of above-ground biomass, such as timber or branches, and below-ground biomass such as roots, or organic carbon in the soil. In addition to the significance of carbon sequestration in climate change mitigation, soil organic carbon (SOC) is an imperative indicator for the soil health as well as fertility. The change in SOC can explain whether the land use pattern degrades or improves the soil fertility. SOC, found in the soil in the form of soil organic matter (SOM), helps to improve soil health either directly or indirectly. Its direct consequence is related to the process of mineralization. Further, agroforestry is highly capable of generating huge amounts of bio-mass. In fact, agroforestry is believed to be particularly suitable for replenishment of SOC. Therefore, efforts should be made to convince farmers for their resource-use efficiency and soil conserving ability in order to get maximum benefits out of agriculture. According to food and agriculture organization (FAO,) agriculture, forestry, and other land use practices account for 24% of global greenhouse gas (GHG) emissions, and total global livestock emissions of 7.1 gigatons of CO2-equivalent per year, representing 14.5% of total anthropogenic GHG emissions. Agroforestry system that deliberately integrates trees and crops with livestock in the agricultural production could potentially increase carbon sequestration and decrease GHG emission from the terrestrial ecosystems, thus, helping in global climatic change mitigation. This study, therefore, aimed at clarification about carbon farming, modifications in carbon cycle and carbon sequestration during agricultural development in addition to benefits of agroforestry.