The southern grasslands are an integral part of the grassland ecosystems of China and play an essential role in the terrestrial carbon cycle of the country. We reproduced the spatiotemporal dynamics of the carbon budget of southern grasslands from 1961 to 2013 using the Terrestrial Ecosystem Model and our results showed that the annual carbon budget varied from -8.12 to 6.16 Tg C y-1 with an annual average of 0.45 Tg C y-1 during the study period. Overall, southern grasslands acted as a weak carbon sink and sequestrated 23.83 Tg C from 1961 to 2013. At the seasonal scale, southern grasslands acted as a carbon sink in wet seasons but as a carbon source in dry seasons. During the study period, temperature and precipitation were the main factors driving carbon budget dynamics at the seasonal scale, while soil moisture was the main driving factor at the annual scale. Over the entire study region, 71.81% of the area switched to being a carbon sink while only 5.90% remained stable and the strong carbon sinks were mainly found in the southern, northern and western areas of the southern grasslands.