Forest fragmentation is pervasive throughout the world's forests, impacting growing conditions and carbon (C) dynamics through edge effects that produce gradients in microclimate, biogeochemistry, and stand structure. Despite the majority of global forests being <1 km from an edge, our understanding of forest C dynamics is largely derived from intact forest systems. Edge effects on the C cycle vary by biome in their direction and magnitude, but current forest C accounting methods and ecosystem models generally fail to include edge effects. In the mesic northeastern US, large increases in C stocks and productivity are found near the temperate forest edge, with over 23% of the forest area within 30 m of an edge. Changes in the wind, fire, and moisture regimes near tropical forest edges result in decreases in C stocks and productivity. This review explores differences in C dynamics observed across biomes through a trade‐offs framework that considers edge microenvironmental changes and limiting factors to productivity.