Soil organic carbon ('SOC') in drylands comprises nearly a third of the global SOC pool and has relatively rapid turnover and thus is a key driver of variability in the global carbon cycle. SOC is also a sensitive indicator of longer-term directional change and disturbance-responses of ecosystem C storage. Biome-scale disruption of the dryland carbon cycle by exotic annual grass invasions (mainly Bromus tectorum, 'Cheatgrass') threatens carbon storage and corresponding benefits to soil hydrology and nutrient retention. Past studies on cheatgrass impacts mainly focused on total C, and of the few that evaluated SOC, none compared the very different fractions of SOC, such as relatively unstable particulate organic carbon (POC) or relatively stable, mineral-associated organic carbon (MAOC). We measured SOC and its POC and MAOC constituents in the surface soils of sites that had sagebrush canopies but differed in whether their understories had been invaded by cheatgrass or not, in both warm and relatively colder ecoregions of the western USA. MAOC stocks were 36.1% less in the 0–10 cm depth and 46.1% less in the 10–20 cm depth in the cheatgrass-invaded stands compared to the uninvaded stands of the warmer Colorado Plateau, but not in the cooler and more carbon-rich Wyoming Basin ecoregion. In plots where cheatgrass increased SOC, it was via unstable POC. These findings indicate that cheatgrass effects on the distribution of soil carbon among POC and MAOC fractions may vary among ecoregions, and that cheatgrass can reduce forms of carbon that are otherwise considered stable and 'secure', i.e. sequestered.