Organic carbon (OC) burial plays a crucial role in regulating the Arctic Ocean's capacity to uptake atmospheric CO₂. In this study, we demonstrate the transport, deposition, and degradation patterns of different sources of OC to reveal burial dynamics at the Chukchi Shelf margin, a region with the highest primary production in the Arctic Ocean currently affected by dramatic sea ice retreat. Observations of suspended particulate material show a pronounced separation of terrestrial and marine OC in the water column, which subsequently influences OC lateral transport and differential deposition. Easily suspendable terrestrial OC is concentrated in the upper 10 m of water or sea ice and transported to the Canada Basin, where it undergoes severe degradation of fresh carbon in the water column and uppermost sediments. In contrast, faster-settling marine OC is more likely to be buried in the canyons and at the Chukchi Shelf margin, with ice algae contributing about 14 % and 55 % of OC burial in areas south and north of 73°N, respectively, leading to higher initial burial efficiency. Increasing Arctic marine primary production could thus enhance the region's role as a carbon sink over millennial timescales, although the burial efficiency of terrestrial OC will eventually exceed that of marine OC with prolonged burial time. Our findings highlight the importance of lateral transport, differential deposition, and selective degradation in Arctic carbon burial, providing a basis for objectively assessing the future capacity of the Arctic carbon sink and its feedback to climate change.