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Compost application is commonly considered by winegrape producers to improve soil health while sequestering carbon (C) and mitigating climate change. However, inputs of available C and nitrogen (N) as nutrients can induce emissions of greenhouse gases (GHG) such as carbon dioxide (CO2) and nitrous oxide (N2O). A 2-year field experiment in a Mediterranean vineyard on the California Central Coast was conducted to investigate the short-term effects of compost application at four different rates on soil C dynamics and greenhouse gas emissions. Two years of greenhouse gas sampling were performed using static chambers at vineyard management events in two functional locations (tractor row and under the vines). Soil samples were collected annually in spring at the same locations at 0–15, 15–30 and 30–60 cm depth, and during greenhouse gas sampling at 0–15 cm. The increasing compost application rate did not increase soil C stock, cumulative greenhouse gas emissions and global warming potential. The increase in active soil C observed to the depth of 60 cm suggests that increasing the compost application rate up to the rate of 13.5 Mg ha-1 year-1 can facilitate the early stages of C stabilization and sequestration. Compost application did not have a significant effect on grape yield or cover crop growth during the study. Our results provided important information on the potential environmental tradeoffs as greenhouse gas emissions from compost applications, which should be taken into account when considering the vineyard C budget.