ABSTRACT Desert ecosystems, once considered biologically inert, are increasingly recognized for their untapped potential in global carbon sequestration (CS). This review addresses a central research question: how do precipitation patterns, vegetation dynamics, and soil processes influence carbon cycling and storage in arid environments, and what is the role of inorganic CS mechanisms in these systems? We synthesize current knowledge on the physicochemical and hydrological processes that regulate carbon dynamics in deserts, with a focus on both organic and inorganic pathways. Key findings reveal that while deserts can function as significant carbon sinks, their CS capacity is highly modulated by sparse rainfall, episodic vegetation growth, and carbonate formation processes in soils. Furthermore, we critically evaluate advanced carbon capture and storage (CCS) technologies and soil carbon enhancement techniques tailored to arid regions, identifying both their potential and limitations. Persistent challenges, such as water scarcity, nutrient limitation, and soil degradation, pose constraints but also present opportunities for innovation in CS strategies. Our synthesis highlights deserts as dynamic, if underutilized, components of the global carbon cycle. We conclude that targeted interventions and integrated land management approaches could substantially improve CS in desert ecosystems, making them valuable assets in climate change mitigation, energy transition planning, and long‐term environmental resilience.