Oxytenanthera abyssinica is known to be one of the lowland perennial grass species in Ethiopia. This study was conducted to assess its woody species diversity based on homestead agroforestry system, carbon sequestration potential and its socioeconomic benefits at Tselemti district. A total of ninety nine plots, ninety from less than five year, five to ten years and greater than ten years domestication of O. abyssinica based homesteads and one exclosure with nine plots as comparison were taken. In total, 27 culms were randomly selected for biomass and carbon stock determination using three levels of age and three DBH levels. A total of 153 households were surveyed to assess socioeconomic benefits of O. abyssinica. The study revealed that species density, richness and diversity were significantly higher in the exclosure than in the three homesteads (p
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