China has large area of grasslands,accounting for about 40% of the national total areas.Inner Mongolia grassland comprises more than 20%of Chinas total grasslands.In the recent past,Inner Mongolia grassland has been undergoing successive degradation driven by both natural factors and human disturbance, which exerts negative influence on carbon sequestration ability of the ecosystem.This paper reviewed the criteria,degree and current situation of grassland degradation in Inner Mongolia.Driving forces of grassland degradation in the region were probed in the aspects of human activities,climate change and material inflow and outflow in the grassland ecosystem.The basic progress of carbon cycle and the impact of grassland degradation on carbon sequestration were discussed.This paper also introduced the carbon sequestration potential of degraded grassland under varied restoration implementations.Finally,the strategy for preventing grassland from degradation and for enhancing the carbon sequestration ability was recommended.