Agroforestry is a common practice in the tropics that is characterized by various activities such as parkland on cultivated lands or home garden agroforestry around homesteads. In Ethiopia, agroforestry is an ancient land use type that is practiced by smallholder farmers. Scattered trees in cropland or parkland trees and home garden trees are old agroforestry practices, and the most dominant practices exist in different parts of Ethiopia. They cover large areas of highland, midland, and lowland agroecologies of Liban Jawi District in West Showa of Oromia National Regional State, Central Ethiopia. However, woody species particularly in parklands are declining in many agricultural landscapes due to the overuses for fuel wood, charcoal production, and expansion of agricultural lands due to the degradation of nearby forests. In the study sites, comprehensive studies in terms of their composition, diversity, structure, and carbon stocks are still not well explored. In this context, we assessed woody species composition and diversity, structure, and carbon stocks because parkland and home garden agroforestry practices in three agroecologies of highland, midland, and lowlands in the district were not quantified. About 45 parkland woody species were collected from 150 plots of 5000 m2, and 35 home garden woody species were collected from 70 plots of 400 m2. As a result, a total of 80 species belonging to 52 families and 62 genera were collected from parkland and home garden agroforestry practices. Woody species diversity was analyzed using species richness, Shannon diversity index, and Shannon evenness index. In this study, the Shannon diversity (2.8) and Shannon evenness indexes (0.54) of woody species were computed in parkland agroforestry, in the meantime the Shannon diversity index (3.30) and Shannon evenness index (0.52) for woody species of the home garden were computed. The distribution of diameter classes of 10–30 cm had the highest number of trees and shrubs followed by 31–60 cm diameter classes. However, the highest number of trees and shrubs were in 61–90 cm diameter class in the home garden. In this study, woody species, such as Citrus sinensis, Mangifera indica, Persea americana, Sesbania sesban, Vernonia amygdalina, and Azadirachta indica were the dominant species under the two agroforestry practices. The values of carbon stack for highland, midland, and lowland in parkland agroforestry were 19.8 MgCha−1, 17.6 MgCha−1, and 17.5 MgCha−1, respectively. Meanwhile, the total biomass of woody species in highland, midland, and lowland for homestead agroforestry was 32.6 MgCha−1, 34.7 MgCha−1, and 31.2 MgCha−1, respectively. These resulted in carbon dioxide sequestered of 72.59 CO2 equivalents (tha−1), 64.52 CO2 equivalents (tha−1), and 64.16 CO2 equivalents (tha−1) in highland, midland, and lowland woody species, respectively. This study holds significant inputs for policymakers, regional administrators, environmentalists, and natural resource experts by informing the farmers’ management and conservation of woody species on cultivated lands and home garden agroforestry plants around their homesteads which is serving as ecosystem services and climate mitigation response within Liban Jawi district. Under parkland and homestead agroforestry practices, communities should have know-how to predict the environmental consequences of the destruction of woody species on their farmlands.