Homegarden agroforestry is an ancient practice in Ethiopia. However, information on the contribution of homegarden agroforestry to household income in Burie District is scant. Therefore, the study is conducted to assess the contribution of homegarden agroforestry to household income and factors affecting its use by smallholder farmers in Burie district, West Gojam, Zone, Northwestern Ethiopia. A mixed research methods approach was applied to gather both quantitative and qualitative data. Multi-stage sampling technique was employed to select the study area, kebeles, and sample households. A total of 345 sample sizes were selected using simple random sampling technique. Primary data sources were collected from a household survey, focus group discussions (FGDs), and key informant interviews (KII). Data were analyzed using descriptive statistics and binary logistic regression. The Simpson Index of Diversity (SID) result indicates that the mean value of the income diversification index is 0.59, which is medium in the study area. The average total annual income of homegarden agroforestry practicing and non-practicing households was 21633.78 Ethiopian Birr (ETB) and 18990.27 Ethiopian Birr (ETB), respectively. The mean difference in total annual income between homegarden agroforestry practicing and non-practicing households was 2643.50 Ethiopian Birr (ETB). The logistic regression analysis revealed that family size, educational status,total farm size, and total annual income had positively and significantly influenced the practice of homegarden agroforestry. However, the number of livestock and distance from the market had negatively influenced the practice of homegarden agroforestry. It is concluded that homegarden agroforestry had a contribution to household income. Therefore, it suggested that farmers need to use an intensive farming system and increase their awareness towards the contribution of homegarden agroforestry. The study also recommends that infrastructure, particularly market access, be improved to enhance homegarden agroforestry development and realize integrated rural development in the study area.