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Agroforestry aims to raise the production of food crops, legumes and tuber to meet the rapidly growing food requirements of the population. It is an important means to support rural livelihood. This study was conducted to quantify the contribution of agroforestry in farm income, to assess the contribution of Agroforestry in fuelwood, fodder, and grass and timber requirement of rural household and to assess the relationship of income from agroforestry and area under agroforestry practices. Four VDCs of Makawanpur district namely Hadikhola, Manahari, Raksirang & Kankada were purposively selected for the study where local communities are practicing agroforestry in an organized manner for more than 10 years. On an average annual income per household from agroforestry was found to be US$ 596. Similarly, the contribution of agroforestry in fuelwood, fodder, grass and timber requirement has been found to be 68%, 73%, 76%, and 16% respectively.