Charcoal production and wood burning are some of the causes of increasing carbon concentration in the atmosphere. This activity by cutting trees reduces the density and volume of forest stands per hectare and leads to changing carbon sequestration in a forest stand. Given the importance of this issue and the challenges associated with increased atmospheric carbon, the role of soil and forest biomass in carbon sequestration is important. In order to investigate the effect of charcoal production on carbon sequestration, four kilns were selected in Bastam district of Al-shater city and five sample plots 10 × 10 m measuring at 20, 40, 60, 80 and 100 m intervals were established from four main directions of each kiln. In both control (outside of the charcoal area) and sample area, above- and under-ground biomass of trees, carbon sequestration, grass cover, and soil were measured. The results showed that the highest and lowest amounts of soil carbon sequestrations were in the 0-15 cm depth of control (2762.0221 ton /ha) and 60 m distance from the kilns (1663.601 ton/ha), respectively. Also, ­ the highest amount of carbon sequestration was observed in the control area (3.515 ton/ha) and the lowest was in the distance of 20 meters from the kilns (2.116 ton/ha). Results of carbon sequestration of herbal vegetation and litters also showed that there was no significant difference between distances and the control area. Overall, the results of this study showed that the carbon sequestration of the soil and the tree increases with increasing the distance from the charcoal kilns. Therefore, it is necessary to control and manage the charcoal production process in the Zagros forest.