The coupling of soil erosion (especially interrill erosion by water) and the dynamics of soil organic carbon (SOC) in agricultural landscapes has been widely studied over the past two decades. To date, however, the role of soil erosion in global C cycle remains a topic of debate. Numerous questions remain to be addressed before determining the C sink/source effect of soil erosion, especially for the mineralization and sequestration of eroded SOC upon erosion, transport and deposition. In this review, we provide a comprehensive cross-disciplinary review on SOC mineralization and sequestration at sites of erosion, along the transport pathway and at depositional sites. The current state of knowledge on the impacts of erosion-induced soil aggregate breakdown and formation, removal of SOC from eroding sites and deep burial of SOC at depositional sites on the mineralization and sequestration of SOC are presented. Furthermore, we provide an overview of the conceptual relations between soil biological properties (microbial abundance, species diversity, community composition and enzyme activity) and the mineralization and sequestration of SOC in eroded agricultural landscapes, which are often overlooked by previous research and reviews. The comprehensive understanding of physical, chemical and biological mechanisms affecting the mineralization and sequestration of eroded SOC provides important insights to balance the global carbon budget and finally holds the answer on the carbon sink/source controversy.