AbstractTropical forests are major contributors to the terrestrial global carbon pool, but this pool is being reduced via deforestation and forest degradation. Relatively few studies have assessed carbon storage in degraded tropical forests. We sampled 37,000 m2 of intact rainforest, degraded rainforest and sclerophyll forest across the greater Wet Tropics bioregion of northeast Australia. We compared aboveground biomass and carbon storage of the three forest types, and the effects of forest structural attributes and environmental factors that influence carbon storage. Some degraded forests were found to store much less aboveground carbon than intact rainforests, whereas others sites had similar carbon storage to primary forest. Sclerophyll forests had lower carbon storage, comparable to the most heavily degraded rainforests. Our findings indicate that under certain situations, degraded forest may store as much carbon as intact rainforests. Strategic rehabilitation of degraded forests could enhance regional carbon storage and have positive benefits for tropical biodiversity.