Climate dynamics management plays a crucial role in safeguarding the environment from a global to local scale. Land degradation poses a significant threat to the livelihoods of millions of people living in drylands. Arid regions are particularly vulnerable when it comes to finding suitable habitats for ecological processes. Various global initiatives have been developed to restore degraded drylands. In addition, exclosures have important implications in arid areas for regulating environmental services. However, there is a lack of systematic studies on the biomass improvement and climate change mitigation effects of exclosures. A study was carried out in the Sekota district of northern Ethiopia to evaluate the impact of exclosures on biomass production and carbon stock. Three sites—Gateno, Jinqaba, and Mildam—were chosen for the pilot study. Data was collected from 27 quadrats, with different sizes used for sampling saplings, seedlings, litter, and soil. Soil samples were taken at depths of 0–20 cm and 0–40 cm. The data was analyzed using Excel and R Studio, and a linear mixed-effect model was used to determine the differences between land uses. The results indicated significant variations in above-ground biomass carbon, soil organic carbon, and total carbon stock between the two land uses. Furthermore, the observational perspective of exclosures in the Sekota district reveals a sustainable and suitable environment for interested parties. Exclosures prove to be effective in the restoration of degraded lands, as well as in enhancing biomass accumulation and carbon sequestration.