Despite the progress made in understanding relevant carbon dynamics under grazing exclusion, previous studies have underestimated the role of soil bulk density (BD), and its implications for potential accumulation of soil organic carbon (SOC), especially at regional scale over long term. In this study, we first constructed a database covering a vast majority of the grasslands in northwestern China based on 131 published literatures. A synthesis was then conducted by analyzing the experimental data to comprehensively investigate the mechanisms of vegetation recovery, carbon-nitrogen coupling, and the importance of changed soil BD in evaluating SOC sequestration potential. The results showed that although the recovery of vegetation height and cover were both critical for improving vegetation biomass, vegetation height required a longer recovery period. While the SOC accumulation was found to be greater in surface layers than deeper ones, it exhibited a reduced capacity for carbon sequestration and an increased risk of SOC loss. Grazing exclusion significantly reduced soil BD across different soil profiles, with the rate of change influenced by soil depth, time, geographical and climatic conditions. The potential for SOC accumulation in the top 30 cm of soil based on data of 2003-2022 was 0.78 Mg ha-1 yr-1 without considering BD effects, which was significantly underestimated compared to that of 1.16 Mg ha-1 yr-1 when BD changes were considered properly. This suggests that the efficiency of grazing exclusion in carbon sequestration and climate mitigation may have been previously underreported. Furthermore, mean annual precipitation represented the most relevant environmental factor that positively correlated to SOC accumulation, and a wetter climate may offer greater potential for carbon accumulation. Overall, this study implies grazing exclusion may play an even more critical role in carbon sequestration and climate change mitigation over long-term than previously recognized, which provides essential scientific evidence for implementing stepwise ecological restoration in grasslands.