Most climate change impacts are linked to terrestrial vegetation productivity, carbon stocks and land use change. Changes in land use and climate drive the dynamics of terrestrial carbon cycle. These carbon cycle dynamics operate at different spatial and temporal scales. Quantification of the spatial and temporal variability of carbon flux has been challenging because land-atmosphere-carbon exchange is influenced by many factors, including but not limited to, land use change and climate change and variability. The study of terrestrial carbon cycle, mainly gross primary product (GPP), net ecosystem exchange (NEE), soil organic carbon (SOC) and ecosystem respiration (Re) and their interactions with land use and climate change, are critical to understanding the terrestrial ecosystem. The main objective of this study was to examine the interactions among land use, climate change and terrestrial carbon cycling in the state of Texas using satellite measurements. We studied GPP, NEE, Re and SOC distributions for five selected major land covers and all ten climate zones in Texas using Soil Moisture Active Passive (SMAP) carbon products. SMAP Carbon products (Res=9 km) were compared with observed CO2 flux data measured at EC flux site on Prairie View A&M University Research Farm. Results showed the same land cover in different climate zones has significantly different carbon sequestration potentials. For example, cropland of the humid climate zone has higher (-228 g C/m2) carbon sequestration potentials than the semiarid climate zone (-36 g C/m2). Also, shrub land in the humid zone and in the semiarid zone showed high (-120 g C/m2) and low (-36 g C/m2) potentials of carbon sequestration, respectively, in the state. Overall, the analyses indicate CO2 storage and exchange respond differently to various land covers, and environments due to differences in water availability, root distribution and soil properties.