Analyzing the carbon sequestration function and evaluating the carbon sequestration capacity of Yudiba dams is a crucial prerequisite for determining the carbon sequestration effects of Yudiba dams and other soil and water conservation measures, and can provide valuable data references for achieving carbon emission peak and carbon neutralization. Here, we take the Yudiba dams on the Chinese Loess Plateau as the research object, systematically exploring the carbon sequestration effect and mechanism of Yudiba dams, and propose an estimation method for their carbon sequestration capacity. The results show that Yudiba dams effectively protect soil and carbon, mitigate erosion and carbon emission, and promote vegetation and carbon sequestration. In the past 50 years, the carbon conservation, carbon emission reduction, and carbon sequestration capacity of Yudiba dams on the Chinese Loess Plateau are 2.16×10⁷, 4.33×10⁶~8.66×10⁶ and 6.84×10⁵ t C, respectively, which can enhance the carbon neutralization capacity of the ecosystem and reduce the carbon peak value. Yudiba dams and other significant soil and water conservation measures have demonstrated a variety of positive ecological restoration benefits, such as soil conservation, erosion reduction, and vegetation restoration, which fully promote the comprehensive role of carbon sequestration in carbon conservation, carbon emission reduction, and carbon sequestration increase. The implementation of soil and water conservation that focus on enhancing carbon sequestration not only reinforces the significance of terrestrial ecosystems in carbon sequestration, but also leads to a continual improvement of the carbon sequestration potential of terrestrial ecosystems, and plays a significant role in achieving carbon emission peak and carbon neutrality within the sphere of soil and water conservation.