In order to study the effects of Cinnamomum camphora plantations on properties of degraded red soil and utilization of microbial carbon sources in eastern Hu'nan, forest soil and non-forest soil samples were paired sampled and analyzed. The results showed that the pH in forest soil was significantly increased by 0.95 units compared with non-forest soil, and the total phosphorus, total potassium and water contents were significantly increased by 14.8%, 16.8% and 45.6%, respectively. But the soil bulk density was significantly decreased by 8.1%. The average well color development (AWCD) of soil microorganisms was significantly increased by long-term Cinnamomum camphora restoration. Furthermore, the microbial metabolic intensities of carbohydrates, amino acids, carboxylic acids, polymers and phenolic compounds in non-forest soil were only 27.6%, 19.2%, 23.4%, 47.1% and 3.5% of those in forest soil, respectively. In addition, soil microbial functional diversity indexes were significantly increased by long-term Cinnamomum camphora restoration. Principal component analysis (PCA) showed that Cinnamomum camphora plantations changed the carbon sources utilization pattern of soil microbial community. Correlation analysis showed that the improved soil physical and chemical properties after Cinnamomum camphora restoration were reasons for the improvement of microbial carbon sources utilization capacity and functional diversity indexes, and among which, soil pH was the primary driving factor. In conclusion, Cinnamomum camphora plantations could improve the microbial ecological function of degraded red soil in eastern Hu'nan, and Cinnamomum camphora is a suitable tree species for ecological restoration and reconstruction of degraded red soil.