Approximately one third of California is grazed by livestock, with most forage produced on annual rangelands, the common term for rangelands with a significant annual herbaceous component. Given the state's interest in mitigating climate change and growing public attention on grazing systems that enhance carbon sequestration, we investigate the impact of grazing management on soil carbon cycling on California annual rangelands, drawing on soil science, rangeland management, and policy analysis literature. We conclude that using managed grazing for augmenting soil organic carbon on California annual rangelands presents significant challenges. Challenges include the heterogeneity, biogeochemical characteristics, and nonequilibrium nature of California's Mediterranean region, where ecological site conditions, soil type and texture, and climate moderate carbon sequestration. Enduring unknowns in the science underlying soil carbon and the dearth of relevant California-based studies further obscure the potential climate change mitigation effects of grazing systems. Given this, grazing management on California annual rangelands should not be prioritized as a climate change mitigation strategy, unless it is for the purposes of data collection and research. Alternative climate change mitigation opportunities on these landscapes include preventing rangeland conversion and enhancing soil carbon stocks through the suite of range management practices known to augment soil organic carbon or prevent erosion, including marginal cropland restoration, riparian restoration, organic amendments, and silvopasture. In this review, we argue that single-purpose management is generally not fitting for the diverse portfolio of social-ecological services produced on California's vast and varied rangelands. When assessing the value of grazing systems for augmenting soil organic carbon, policymakers, landowners, and other decision makers should consider the potential impacts on the numerous ecosystem services supported by the landscape. The multidisciplinary method presented in this review provides a critical framework for evaluating the appropriateness of working lands carbon policies as Natural Climate Solutions for climate change mitigation are developed in California and other geographies.