Ethnobotany plays a significant role in advancing carbon neutrality by combining traditional ecological knowledge with sustainable industrial practices. Indigenous communities, especially in the Western Himalaya, have used agroforestry, rotational farming, and sacred grove preservation to support carbon sequestration, conserve biodiversity, and manage natural resources sustainably. Their climate-resilient crops and wild plant-based food systems also strengthen food security and environmental resilience. Replacing high-emission industrial goods with ethnobotanical alternatives—such as using plant-based dyes instead of synthetic ones, natural fibers for textiles, and biodegradable resins for adhesives—helps lower carbon footprints. Additionally, ethnoveterinary practices like using herbal feed additives can reduce methane emissions and encourage sustainable livestock management. Industries can also use plants to capture carbon by using medicinal and aromatic plants to purify the air, cleaning up pollution with special plants (phytoremediation), and adopting eco-friendly methods to extract plant-based materials while protecting the environment. Traditional healing systems, which include Ayurveda and Traditional Chinese Medicine (TCM), demonstrate sustainable medicinal plant use through regenerative agriculture, ethical harvesting, and eco-friendly processing techniques. To maximize the potential of ethnobotany in carbon neutrality, strong policy agendas and collaborations between policymakers, industries, and indigenous communities are essential. By integrating ethnobotanical principles into industrial strategies, industries can drive low-carbon development, circular economies, and sustainable innovations. The relationship between traditional knowledge and modern sustainability plays a significant role in developing carbon-neutral industries while at the same time preserving cultural heritage and biodiversity.