Large influx of excess nutrients into sub-tropical brackish-water habitats is expected to radically affect the algal populations in the heavily populated Sunderbans brackish-water ecozone. Twelve selected brackish-water sites in the Indian Sunderbans were surveyed to investigate the growth performance of mat-forming dominant algal/cyanobacterial macrophytes and their potential for carbon (C) sequestration into hydrologic and pedologic pools. The mats were dominated by particular taxa at different seasons related to physico-chemical properties of the wetland habitats. Different environmental variables and biomass productivity parameters were measured on fortnightly basis to assess the carbon cycle related to dominant algal blooms of the study area. The dominating species at the twelve sites included seven genera (Spirogyra, Rhizoclonium, Ulva, Cladophora, Pithophora, Chaetomorpha) belonging to Chlorophyta, three genera (Polysiphonia, Gracilaria, Catenella) belonging to Rhodophyta and Lyngbya majuscula from cyanobacteria. Multivariate statistical methods indicated that nutrient availability, particularly dissolved P concentration and N:P ratio in the water column, along with salinity in the water column mainly affected biomass yield and C sequestration of mat-forming macrophytes and OC input into water column. However, OC contents of underlying muck proved to be very stable, though small influxes of OC occurred at each bloom. High biomass yields (34–3107 g/m2) of the dominant mat components accumulated enormous stocks of OC, very little of which reaches the pedologic pool. This transient biomass might be utilized as dietary supplements or biofuel feedstocks. Availability of important dietary fatty acids in Spirogyra punctulata, Gracilaria sp., Polysiphonia mollis, Rhizoclonium riparium, R. tortuosum, Pithophora oedogonia and Ulva lactuca was considered as suitability of these species as nutraceuticals. Fatty acid compositions of L. majuscula, Catenella repens, R. tortuosum and Cladophora crystallina were estimated to be applicable for producing biodiesel for usage in sub-tropical climates. © 2017 Elsevier B.V.