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Woody species are critical for maintaining biodiversity, providing ecosystem services, and supporting carbon sequestration, yet in Ethiopia they are increasingly threatened by deforestation, land-use change, overgrazing, and habitat fragmentation. Understanding patterns of diversity, structure, regeneration and carbon sequestration potential of woody species is therefore essential for guiding conservation, sustainable management, and climate-smart land-use strategies. In light of this, the objective of this systematic review was to synthesize existing research on woody species across different land-use types, ecological zones, and management systems in Ethiopia, generating integrated knowledge to inform policy, management, and scientific understanding. Data were systematically collected from 75 peer-reviewed articles through a rigorous literature search using multiple electronic databases (Google Scholar, Scopus, Web of Science), complemented by institutional repositories and grey literature. Clearly defined inclusion criteria (studies conducted in Ethiopia, covering woody species diversity, structure, or regeneration across different land uses) and exclusion criteria (studies lacking primary data, conducted outside Ethiopia, or focusing solely on non-woody vegetation) were applied to ensure scientific rigor. The review demonstrates that natural forests, exclosures, sacred groves, and agroforestry systems consistently exhibit higher species richness, structural complexity, and regeneration potential compared to degraded or heavily grazed lands. Environmental factors (altitude, slope, soil fertility, microclimate) and anthropogenic pressures (logging, grazing, land conversion) strongly influence species composition, population structure, and carbon stocks. Interventions such as exclosures and protected areas enhance natural regeneration and carbon sequestration, while agroforestry systems support both biodiversity and local livelihoods. Key research gaps were identified, including limited long-term monitoring, underrepresentation of lowland and arid ecosystems, insufficient linkage between diversity and ecosystem services, and lack of studies addressing climate change impacts. This synthesis provides a scientific foundation for integrative, multi-scale management approaches to promote biodiversity conservation, ecosystem resilience, carbon sequestration, and sustainable land use in Ethiopia and similar regions.