Ecosystems provide humankind with a wide range of services that are fundamental for our wellness, development, and survival. In recent decades, the loss and deterioration of ecosystems a result of anthropogenic pressures had increased global awareness. Tropical Dry Forests (TDFs) are ecosystems with considerable potential for the provision of essential Ecosystem Services (ES). As such, the main objective of this thesis was to determinate the potential of TDFs to supply two key ES: carbon sequestration and water provision. By doing so, first I estimated the biophysical capacity of TDFs for sequestering carbon and their associated economic value across the Americas. Overall results showed important contributions of the TDFs for the regulation of climate given their efficiency for the transfer of carbon dioxide from the atmosphere as terrestrial biomass. Main biophysical trends showed to be higher and consistent overtime at northern latitudes, and lower but increasing at southern latitudes. Furthermore, I estimated the cost of carbon sequestration for a hectare of TDFs in different Latin American countries. I also established a baseline for the biophysical assessment of water provisioning services in a TDF, by using a hydrological process-based modeling approach. Simulation results showed appropriate provisioning of water over time. Moreover, important considerations regarding the spatial variability in the provisioning of water in the catchment area were identified and were also relevant to determine differences in the supply of water for human settlements. Since TDFs are ecosystems vulnerable to water scarcity, I also analyzed the potential effect of extreme climatic events on the reliability of the provision of water services. Scenario analysis suggests possible effects of El Niño in the supply of water yield at the study area.