<p>Wetlands, particularly oxbow lakes, play a vital role in global climate regulation by acting as significant carbon sinks and concurrently contribute greenhouse gas (GHG), especially methane, to the atmosphere. This study examined the spatio-temporal dynamics of oxbow lakes in the Kalindri River basin in West Bengal, India, focusing on their roles in carbon sequestration and methane emission, to assess their net impact on climate change mitigation. Utilizing Landsat OLI satellite imagery, the study mapped oxbow lakes and estimated methane emissions and carbon sequestration over multiple seasons. The results demonstrate that while oxbow lakes emit methane, their carbon sequestration capacity is significantly higher, leading to a positive net balance in terms of mass regulation, global warming potential (GWP) and fixation cost. In 2023, the oxbow lakes sequestered 2.39 × 10³ tons of carbon while emitting only 0.025 × 10³ tons of methane, resulting in a net positive impact on GHG sinking and reducing the warming effect. Financially, the sequestration of carbon provides substantial economic benefits, with sequestration costs exceeding those of methane emissions. So, findings reported the positive role of oxbow lakes towards mitigating climate change. So, wetland conservation and restoration strategies would be a natural solution to climate change, emphasizing their potential for long-term GHG regulation and ecosystem service provision.</p>