Enhancing the terrestrial ecosystem carbon sink (referred to as terrestrial C sink) is an important way to slow down the continuous increase in atmospheric carbon dioxide (CO) concentration and to achieve carbon neutrality target. To better understand the characteristics of terrestrial C sinks and their contribution to carbon neutrality, this review summarizes major progress in terrestrial C budget researches during the past decades, clarifies spatial patterns and drivers of terrestrial C sources and sinks in China and around the world, and examines the role of terrestrial C sinks in achieving carbon neutrality target. According to recent studies, the global terrestrial C sink has been increasing from a source of (-0.2±0.9) Pg C yr (1 Pg=10 g) in the 1960s to a sink of (1.9±1.1) Pg C yr in the 2010s. By synthesizing the published data, we estimate terrestrial C sink of 0.20-0.25 Pg C yr in China during the past decades, and predict it to be 0.15-0.52 Pg C yr by 2060. The terrestrial C sinks are mainly located in the mid- and high latitudes of the Northern Hemisphere, while tropical regions act as a weak C sink or source. The C balance differs much among ecosystem types: forest is the major C sink; shrubland, wetland and farmland soil act as C sinks; and whether the grassland functions as C sink or source remains unclear. Desert might be a C sink, but the magnitude and the associated mechanisms are still controversial. Elevated atmospheric CO concentration, nitrogen deposition, climate change, and land cover change are the main drivers of terrestrial C sinks, while other factors such as fires and aerosols would also affect ecosystem C balance. The driving factors of terrestrial C sink differ among regions. Elevated CO concentration and climate change are major drivers of the C sinks in North America and Europe, while afforestation and ecological restoration are additionally important forcing factors of terrestrial C sinks in China. For future studies, we recommend the necessity for intensive and long term ecosystem C monitoring over broad geographic scale to improve terrestrial biosphere models for accurately evaluating terrestrial C budget and its dynamics under various climate change and policy scenarios.