Regrowth of native woody vegetation has the potential to provide an economically valuable source of carbon storage and other ecosystem services. There is a lack of readily applicable examples of how regrowth of forests and woodlands can be integrated with existing grazing production systems and provide soil-protection and water-retention benefits. A system of integrated vegetation bands (IVB) was applied to patchy regrowth of acacia and eucalypt vegetation in a grazed landscape of southern Queensland, Australia. Across a 39.8-ha catchment with 3–5% slope, regrowth of scattered native vegetation (18.4 ha) was surveyed and diameter at breast height and height for all woody plants were recorded. The IVB (6.3 ha) were then marked out as 25-m-wide bands set 100 m apart and offset at ~2–3% gradient to the contour line, retaining the densest/largest regrowth where possible. The data on diameter at breast height and height were analysed using allometric equations to compare aboveground biomass in the original regrowth condition (‘Original’) to that retained in the installed IVB (‘IVB-Riparian’). Estimates of aboveground biomass were calculated for the Original and IVB-Riparian and compared with three other potential regrowth-vegetation management ‘treatments’ in a desktop-modelling study. The models were designated as: (1) ‘Original’; (2) ‘Broad’ (broad-scale cleared with only a few large trees along a creek retained)’; (3) ‘Big Trees’ (only large trees >40 cm diameter at breast height retained); (4) ‘Riparian-IVB (bands of vegetation); and (5) ‘Riparian-IVB-Big Trees’ (large trees together with ‘IVB-Riparian’). In the non-forested area of the catchment, ‘Riparian-IVB-Big Trees’ (301 t), ‘Big Trees’ (249 t) and ‘Riparian-IVB’ (200 t) had the highest aboveground biomass retained, whereas ‘Broad’ resulted in the most pasture area (~33 ha) followed by ‘Riparian-IVB’ (~26 ha). The ‘Riparian-IVB’ treatment had the highest tree density within the vegetation bands and more than half (53%) of the original woody biomass in regrowth was retained on just under a quarter (23%) of the land area minimising the impact on the area of pasture/grazing land. This subsequently resulted in the ‘Riparian-IVB’ treatment having the highest carbon offset value (A$605 ha–1). The results demonstrate that the retention of native regrowth vegetation in either IVB or as large paddock trees can retain a large amount of aboveground biomass, with IVB having greater returns per hectare.