This review first highlights the importance of drylands, grazing lands and livestockbased livelihoods and illustrates the interrelations between climate change, land and livestock. It then provides estimates of the potential carbon storage and sequestration in pasture and rangelands in drylands and outlines the main land management measures for improving carbon cycling and grassland management. The socio-economic dimensions of rangeland management and the climate change adaptation and associated co-benefits are then highlighted. In conclusion, it presents some key messages on the importance of grasslands and rangelands in terms of their contribution to carbon sequestration and to the livelihoods of the poor. It highlights the fact that management strategies and practices that contribute to mitigating climate change will also play a major role in climate change adaptation and reducing vulnerability to natural disasters for the millions of people - including the poor - who depend on these land-use systems. Finally, it provides some suggestions on ways forward in light of the current policy framework and climate change negotiations.