Termites are abundant arthropods in tropical ecosystems and actively participate in the process of litter decomposition. The objective of this study was to evaluate the population structure of Microcerotermes indistinctus in arboreal nests and to estimate their contribution to the consumption of wood litter in an area of Caatinga, a type of seasonally dry tropical forest located in the Brazilian semi-arid region. The populations of fifteen nests were quantified and separated into castes, “larvae”, and eggs. Wood blocks of four typical Caatinga species were offered to termites under laboratory conditions. Litter production was estimated in the area over the course of one year. The mean population size of M. indistinctus was 73,897 individuals/nest, while the mean nest density in the area was 25 active nests/ha. Total consumption of the four types of wood was estimated to be 10.5 mg of wood/g termite (fresh weight)/day. Based on consumption and population size, M. indistinctus consumes 0.35% of the total litter and 1.71% of the annual production of branches and twigs in the area. Wood-consuming termites are highly affected by anthropogenic disturbances in the semi-arid region of Brazil, putting the ecosystem services they perform related to the process of litter decomposition at risk.