This study uses in-person interview survey data to examine the impact of implementing forest carbon sequestration projects on the perception of grassroots democracy among farmers in Sichuan, China. The findings indicate that participation at both the village and individual levels in a forest carbon sequestration project positively affects individuals’ perception of grassroots democracy. These results remain robust even after addressing the endogeneity issue associated with participation in forest carbon sequestration projects. Additionally, the study finds that individual participation in the forest carbon sequestration project has heterogeneous impacts on the perception of grassroots democracy among individuals with different migrant working experiences and family incomes. Individuals with migrant work experience or higher family incomes tend to experience more noticeable improvements in their perception of grassroots democracy through forest carbon sequestration projects. This paper provides evidence of the political impact of forest carbon sequestration projects in improving community members’ perception of grassroots democracy.