Carbon sequestration by terrestrial vegetation (Cstv) is a vital ecosystem service for regulating global climate change. This study utilizes satellite data and a two-way fixed effects model to comprehensively examine the relationship between Cstv and haze pollution. The findings indicate that Cstv significantly reduces haze pollution, a conclusion that remains robust under various checks. Mechanism analysis reveals that Cstv mitigates haze pollution through two pathways: enhancing environmental performance and improving economic performance. Additionally, the study identifies regional differences in the effectiveness of Cstv in reducing haze pollution. In non-key areas for air pollution prevention and control, Cstv significantly reduces haze pollution, whereas in key areas for air pollution prevention and control, Cstv has no effect. Furthermore, Cstv has a greater impact on non-key environmental protection cities than on key environmental protection cities. This study provides theoretical support and practical insights for the development of scientifically sound environmental protection policies and economic development strategies.