Methane (CH 4 ) oxidation mitigates CH 4 emission from soils. However, it is still highly uncertain whether soils in highlatitude ecosystems will function as a net source or sink for this important greenhouse gas. We investigated CH 4 production and oxidation potential in permafrost-affected soils from degraded ice-wedge polygons with carbon-rich soils at the Barrow Environmental Observatory, Utqiaġvik (Barrow) Alaska, USA. Frozen soil cores from flat and high-centered polygons were 25 sectioned into active layers, transition zones, and permafrost, and incubated at -2, +4 and +8°C to determine potential CH 4 production and oxidation rates. Organic acids produced by fermentation fueled methanogenesis and competing iron reduction processes responsible for most anaerobic respiration. Significant CH 4 oxidation was observed from the suboxic transition zone and permafrost of flat-centered polygon soil, which also exhibited higher CH 4 production rates during the incubations. Although CH 4 production showed higher temperature sensitivity than CH 4 oxidation, potential rates of CH 4 30 oxidation exceeded methanogenesis rates at each temperature. Assuming no diffusion limitation, our results suggest that CH 4Biogeosciences Discuss., https://doi.org/10.5194/bg-2017-566 Manuscript under review for journal Biogeosciences Discussion started: 29 January 2018 c Author(s) 2018. CC BY 4.0 License. 2 oxidation could offset CH 4 production and limit surface CH 4 emissions, in response to elevated temperature, and thus should be considered in model predictions of net CH 4 fluxes in Arctic polygonal tundra.