A field experiment involving arable crop (groundnut), silvicultural crop (teak) and pasture crop (grass and subabul) was initiated on red gravelly soils of Dharwad during 1984. Teak was platned either 10 and 20 m apart with 2 m between plants. On either side of teak rows, grass slips or subabul seedlings were planted. Groundnut was grown during 1996. 1997 in interspace of teak rows. Groundnut pod yield reduction was 35.3, 36.8, 37.4 per cent with teak, teak + grass and teak + subabul, respectively as compared to sole crop (1149.9 kg ha^-1). The extent of reduction in pod yield was 55.3. 39. 3. 21.6, 9.3 per cent in 1, 2, 3, 4 m distance from teak rows, respectively as compared to 5 m distance. Pod yield was 4.5% lower on western side as comapred to eastern side. Both soil moisture and light transmission ratio were lower in teak with groundnut as compared to sole groundnut and lower near (1 m) teak rows and eastern side of teak rows as compared to 5 m from teak rows and western side of teaks row, respectively.