In a field experiment in 1993/4 at Dharwad, Karnataka, chilli [Capsicum annuum] cv. Byadagi Kaddi and soyabeans cv. JS-335 were grown alone or chilli was intercropped with soyabeans without or with cotton cv. Abhadita sown within soyabean rows, or chilli was intercropped with cotton. Chilli intercropped with soyabeans at a row ratio of 1:1 with cotton sown within soyabean rows produced soyabean seed yield of 1.58 t/ha, chilli yield of 0.30 t, soyabean equivalent yield of 2.96 t and the highest net returns.