Forest plays enormous role in combating climate change; global warming is the most critical global issue currently, by sequestering and storing carbon from the atmosphere through photosynthesis. Forest act as an important part of the global carbon cycle covers 30% of the world terrestrial land area which is equivalent to conserve 81% of the earth’s terrestrial carbon biomass. The study was aimed to assess forest cover dynamics and carbon sequestration potential in the study area. For this study both primary and secondary data sources were used. Primary data like length and width of the plots, diameter at breast height DBH, Soil data and ground control point (GCP) was obtained through field measurements by using instruments like, measuring Tape ,Core Sampler, Auger and global positioning system (GPS) and. The secondary data were collected from different sources like published and unpublished materials, books, journals, articles, reports, and electronic web sites. In addition, to detect the vegetation dynamics of the Bradi forest since 1989 up to2019, SPOT imageries were used. The appropriate way of the sampling design for this study was systematic sampling technique for identification of each intersection point in the area at regular interval. To quantifying the carbon sequestration potential of the study area with parameters like tree DBH, dead woods, litter, tree root and soil. Results in this study shows that the total carbon stock of the forest was 1096.22t/ha whereas trees store 794.22/ha, litter, 36.21 t/ha, soil 106.95 t/ha (0 up to 30cm depth) and root158.84t/ha.). The forest in the study area is a reservoir of high carbon, as it has a good capacity to sink carbon from the atmosphere. To enhance the carbon stock of Bradi Natural Forest, it is better to integrated with REED+ and carbon trading system of the Kyoto Protocol that is an international treaty which extends the united nation framework convention on climate change.