There is a growing concern about climate change, and soils have attracted significant research attention as a sink for atmospheric CO2. Mechanisms of soil organic carbon (SOC) stabilization have received much focus recently due to its relevance in controlling the global C cycle. The purpose of this chapter is to review our existing knowledge of soil organic matter (SOM) dynamics with special reference to the role of clay mineralogy in the retention and stabilization of OC in soil. A good understanding of the stabilization mechanisms of SOM will help in adopting good management practices for SOM storage, improving soil structure and mitigation of greenhouse gas emissions. Here we present the SOM dynamics in relation to their sources and sinks, factors affecting SOC sequestration, and various processes involved in SOM stabilization. We critically review the studies examining soil, environmental, and management factors impacting SOM stabilization with a special reference to clay mineralogy. Finally, we present some future research needs in this area.