Abstract: Background and Objectives: There is lack of information on biomass and soil carbon stocks in dry Afromontanes forests of Ethiopia. This study was therefore aimed to determine the biomass and soil carbon stocks of woody species in Ades dry afromontane forest of south-eastern Ethiopia. Materials and Methods: Three different forest types (Indigenous forest plantations of Cuprecess lusitanica and Eucalyptus globules) have been investigated for biomass and soil sampling. The sampling plot design was based on a US Forest Service model for the indigenous forests. In each plot, all woody species >5 cm Diameter at Breast Height (DBH) were sampled for biomass carbon stock and Soils were sampled at two depths (0-15 and 15-30 cm). Results: Total biomass C densities were generally higher for the indigenous forest and lower for the exotic plantations. The mean above ground carbon stock of the study area for the three forest types was 317.55 MgC ha–1 with average CO2 sequestration potential of 1165.41 Mg CO2 ha–1 and the mean value for below ground carbon stock was 86.2 MgC ha–1 with the average CO2 sequestration potential of 316.35 Mg CO2 ha–1. Conclusion: The study concluded that among the three different forest types studied, the indigenous forest is highly valued for its biomass and carbon stock potential. There was positive relation between the SOC and depth of the soil in all forest types.