The data saturation problem in Landsat imagery is well recognized and is regarded as an important factor resulting in inaccurate forest aboveground biomass (AGB) estimation. However, no study has examined the saturation values for different vegetation types such as coniferous and broadleaf forests. The objective of this study is to estimate the saturation values in Landsat imagery for different vegetation types in a subtropical region and to explore approaches to improving forest AGB estimation. Landsat Thematic Mapper imagery, digital elevation model data, and field measurements in Zhejiang province of Eastern China were used. Correlation analysis and scatterplots were first used to examine specific spectral bands and their relationships with AGB. A spherical model was then used to quantitatively estimate the saturation value of AGB for each vegetation type. A stratification of vegetation types and/or slope aspects was used to determine the potential to improve AGB estimation performance by developing a specific AGB estimation model for each category. Stepwise regression analysis based on Landsat spectral signatures and textures using grey-level co-occurrence matrix (GLCM) was used to develop AGB estimation models for different scenarios: non-stratification, stratification based on either vegetation types, slope aspects, or the combination of vegetation types and slope aspects. The results indicate that pine forest and mixed forest have the highest AGB saturation values (159 and 152 Mg/ha, respectively), Chinese fir and broadleaf forest have lower saturation values (143 and 123 Mg/ha, respectively), and bamboo forest and shrub have the lowest saturation values (75 and 55 Mg/ha, respectively). The stratification based on either vegetation types or slope aspects provided smaller root mean squared errors (RMSEs) than non-stratification. The AGB estimation models based on stratification of both vegetation types and slope aspects provided the most accurate estimation with the smallest RMSE of 24.5 Mg/ha. Relatively low AGB (e.g., less than 40 Mg/ha) sites resulted in overestimation and higher AGB (e.g., greater than 140 Mg/ha) sites resulted in underestimation. The smallest RMSE was obtained when AGB was 80–120 Mg/ha. This research indicates the importance of stratification in mitigating the data saturation problem, thus improving AGB estimation.