An experiment consisting or teak (Silvi), field crops (agri) and grass/ subabul (pastoral) was started during 1984 or red gravely soils, MRS, UAS, Dharwad under rainfed conditions. Teak was planted at 10 m or 20 m apart with 2 m between plants. Pastures were planted on either side of teak row. Marketable timber volume was higher in groundnut+ teak (25.3m-3 ha-1) and sorghum +teak (23.147 m-3 ha-1) and was reduced with inclusion of grass or subabul with teak alley. Fodder yield was significantly higher in grass than subabul. Grain /pod yields were lower in agroforestry systems than their sole croppings. Net return was higher in groundnut +teak (Rs.26585 ha-1 yr-1) sorghum + teak ( Rs. 25259 ha-1 yr-1) and sorghum + teak+subabul (Rs.21475 ha-1 yr-1) as compared to sole crops. Benefit: cost ratio was higher (2.37) in sorghum +teak followed by groundnut (2.32) as compared to sole crops. Inclusion of sorghum or groundnut with teak was economically viable agroforestry system as compared to inclusion of pastures along teak or sole cropping.