Foamed concrete (FC) is a lightweight and environmentally friendly building material that offers versatile applications in civil engineering. However, FC is inherently weak in withstanding tensile and compressive loads. While incorporating fibers into FC has been shown to resist crack propagation and enhance its mechanical properties, the specific mechanisms through which carbon fibers affect FC's tensile and compressive behaviors remain unclear. This study aims to address this gap by incorporating short-cut carbon fibers into FC to achieve a micro-reinforcement effect and enhance its compressive and tensile performance. The mechanical properties, failure modes, and microstructure evolution of carbon fiber-reinforced FC at different density levels, carbon fiber lengths, and contents were comprehensively explored. Digital Image Correlation (DIC) was utilized to analyze crack propagation, and an optimal mix ratio experiment was conducted. The results demonstrate that incorporating carbon fibers effectively enhances the mechanical performance of FC, with a more significant impact on specimens with a density of 500 kg/m3. Furthermore, the maximum improvements in tensile and compressive strengths reached 250 % and 88.5 %, respectively. This study suggests that optimal reinforcement ratio can be achieved through mix ratio adjustments and curve fitting formulas, thereby optimizing the tensile and compressive performance of the specimens.