Abstract: Carbon sequestration in forest soils is considered important for mitigation of carbon dioxide from the atmosphere and for improving forest health and land productivity. The measurement of soil carbon stock is also necessary for carbon inventory and calibration of carbon simulation models. Mitigation of carbon dioxide (CO2) (the main Green-House Gas (GHG)) in the atmosphere can be accomplished by either reducing its emission or by sequestering it in biomass and in soil. Malaysia’s large forested area, estimated at 17.7 M ha, offers an opportunity for carbon sequestration in soil. The forest ecosystem of Peninsular Malaysia alone, is reported to contain 23.48 Million tonnes of Carbon (or 86.17M to CO2 equivalent) and a carbon sequestration potential of 4 tonnes of carbon ha-1 year-1. However, this estimate excludes soil carbon stock despite the fact that the soil carbon component accounts for 36-46% of the total carbon in the forest ecosystem. This study reviews the opportunities and challenges facing carbon sequestration in Malaysian forest soils.