<p>The role of mycorrhizal fungi (MF) in soil carbon (C) sequestration has gained significant attention in the context of climate change. As the Earth’s climate continues to warm, understanding the potential of MF to reduce carbon dioxide (CO₂) emissions and enhance soil C storage has become crucial. Mycorrhizal symbioses between plants and fungi, facilitates the nutrients uptake, enhances plant growth and influences soil C dynamics. Mycorrhizal fungi mediate soil C sequestration by enhancing plant growth and directing photosynthetically fixed C into roots and fungal hyphae, where it contributes to soil organic matter. They also promote soil aggregation through hyphal networks and glomalin production thereby stabilizing C in long-lived soil pools. The potential of mycorrhizal fungi for soil C sequestration is limited by crop-specific and ecosystem-dependent responses, variable effects under elevated CO₂, temperature, and drought, as well as suppression under high fertilizer input or excessive management practices. Therefore, optimizing their role needs specific strategies for sustainable land-use practices, and long-term research to fully increase their potential for building resilient C sinks.</p> Graphical Abstract <p></p>