The present study was conducted to look for viable means of nursery propagation for Pistacia Chinensis and evaluate its field adaptation and carbon sequestration potential. It was hypothesized that germination percentage of Pistacia chinensis is unrelated to substrate types used for propagation and removal of seed coats prior to sowing. Matured seeds of Pistacia Chinensis with protective seed coats were sown on standard soil mixtures (SSM) that comprised 3% top soil, 2% cow dung and 1% sand and germination was compared to seeds with protective seed pods that were sown on composted farm yard manure (FYM). Two independent experiments were conducted in a completely randomized design with four replications each replication containing hundred pure viable seeds. The study results showed that germination percentages of the treatment group (seeds with protective seed coats sown on farm yard manure) were significantly higher at alpha <0.05 than the control group (seeds with protective seed coats sown on standard soil mixtures). In separate experiment seeds without pods were also sown in replicates on standard soil mixture and their germination was compared to intact seeds (Seeds with their pods) sown on standard soil mixture. Germination percentages of seeds without pods was significantly lower as compared to the control groups( intact seeds) at P<0.05. The study revealed that the most viable means of propagating Pistacia Chinensis under the nursery conditions of Debre Zeit was sowing seeds with pods on farm yard manure. The likely explanation for this could be composted farm yard manure is an approximate simulation of the forest floor. Height and collar diameter of trees averaged 194.61 cm and 4.82 cm at Debre Zeit and thus were found significantly higher than their counterparts (141.1 cm height and 3.35 cm diameter) at Wondo Genet in the across location performance study. There was no significant difference between survival percentages at Debre Zeit (82.6%) and Wondo Genet (90.6%). Carbon was estimated through height and diameter measurements of trees on research plot and subsequent calculations using established allometric relations. The total amount of carbon sequestered by planted trees at Debre Zeit amounted to 1.33 tons/ha/year. The promising field performance of the tree species has currently led to its use for urban street side greening of Debre Zeit town.