This research was conducted in six typical villages of Northern Bangladesh. A sample of 170 farmers was selected. Research indicates that the farmers practising agroforestry own small farms and the income of agroforestry helps them to reduce their poverty, maintain their socio-economic needs and sustain their livelihoods. Agroforestry is not a new concept in the study area. The people have been practicing agroforestry traditionally in the form of home gardens, hedgerows and alley cropping. Homestead agroforestry is an age old practice. Alley cropping and hedgerow agroforestry systems are comparatively new. Yet alley cropping is now most popular and is widely accepted in the study area because of its socio-economic advantages and environmental sustainability.