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Incomplete knowledge on the environmental factors linking litter decomposition and the formation of soil organic matter (SOM) hampers the sustainable management of soil as a carbon (C) sink. Here, we explored the effect of soil texture on the fate of C from decomposing litter (Indiangrass; Sorghastrum nutans (L.) Nash) and the concurrent formation of SOM in mineral soils of different textures (sand- and clay-rich) and forest floor material. We quantified the amount of litter C respired, C remaining in the litter, and litter C retained in the soil/forest floor in a 186-day incubation employing stable isotope analyses (13C). We complemented our isotopic approach with the extraction of microbial biomarkers from the litter and soils/forest floor material and spectroscopic studies into the compositional changes of the incubated materials. We found that soil texture affected both the decomposition of litter and the retention of litter-derived C in the soil. The soil rich in clay provided conditions favorable for a more efficient microbial utilization of the litter material (high pH and high C use efficiency) as compared to the sand-rich soil and the forest floor. This resulted in lower amounts of litter C respired as CO2 (25.0%, vs. 55.6 and 56.1% in clay vs. sand and forest floor material, respectively) and higher amounts of litter C retained in the clay-rich soil (12.6% vs. 3.5 and 5.3% in clay vs. sand and forest floor material, respectively). High contents of silt- and clay-sized mineral particles in the clay-rich soil likely resulted in the ability to stabilize litter C in aggregates and organo-mineral associations, perhaps as microbial residues. This ability was low in the sand-rich soil and virtually absent in the forest floor, where the recalcitrance of the litter and native SOM was probably more relevant, and a larger portion of litter C may have been retained in the soil as relatively untransformed plant compounds. We emphasize that litt