Shifting cultivation is claimed as the major cause of drastic deforestation in the uplands of Eastern Bangladesh. Agroforestry is considered as one of the very few options to protect the existing forest and, additionally, lift people out of the poverty trap. This paper indicates that agroforestry may not only be good for (agro)biodiversity and sustainability, but has a good economic rate of return. Both quantitative and qualitative methods are used to analyse data. The financial analysis indicates that agroforestry systems give positive and much higher net present value (NPV) than shifting cultivation. In addition, it is more profitable and less risky than other agricultural options. Appropriate strategies leading to the right choice of species, optimal species combinations, solving land tenure problems, ensuring initial support and imparting training to farmers could promote agroforestry systems and enhance farm income.