Core Ideas Root growth due to mulching may enhance soil C fractions and maize yield. Straw and plastic film mulching effect on soil C fractions and maize yield studied. Plastic film mulching increased maize yield, but reduced soil C fractions. Straw mulching enhanced C fractions and maize yield compared with no mulching. Straw mulching can increase C sequestration, soil health, and dryland maize yield. Stimulation of root growth from mulching may enhance soil C fractions under maize (Zea mays L.). We studied the 5‐yr straw (SM) and plastic film (PM) mulching effect on soil C fractions and maize yield compared with no mulching (CK) in the Loess Plateau of China. Soil samples collected from 0‐ to 10‐ and 10‐ to 20‐cm depths after maize harvest in the fall, 2011 to 2015, were analyzed for soil organic C (SOC), particulate organic C (POC), potential C mineralization (PCM), and microbial biomass C (MBC). At both depths, all C fractions were 7 to 35% greater with SM than PM and CK. At 0 to 20 cm, SOC increased at 0.87 Mg C ha–1 yr–1 with PM and POC increased at 0.18 and 0.54 Mg C ha–1 yr–1 with SM and PM, respectively, from 2011 to 2015. Maize grain yield and aboveground biomass were 5 to 33% greater with PM and SM than CK. The PCM and MBC at all depths were negatively correlated with maize grain yield, but SOC and POC at 10 to 20 cm were positively correlated with estimated maize root residue returned to the soil. Plastic film mulching increased maize yield, but reduced soil C fractions compared with straw mulching. Because of favorable effect on soil C fractions and maize yield, straw mulching can enhance soil C sequestration by increasing labile and intermediate C fractions and sustain maize yield compared with no mulching under dryland cropping systems.