In Ethiopia, agroforestry practices are an ancient practices with a new name. Agroforestry practices and data regarding their value to small-holder farmers' family income in Danglia District are, nevertheless, few. Thus, the purpose of this research is to determine the socioeconomic variables influencing agroforestry in the Danglia district as well as assess the value of agroforestry practices to household income. A mixed-methods research approach was applied to gather both quantitative and qualitative data. A multi-stage sampling technique was employed to select the study area, Kebels, and sample households. A total of 304 sample sizes were selected using a simple random sampling technique. Primary data were collected from household survey, focus group discussions (FGDs), and key informant interviews (KII). The 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 0.69, which is high in the study area based on on-farm, off-farm, and non-farm activities. The average total annual income of agroforestry practices adopter and non-adopter households was 39221.96 Birr and 31024.36 Birr, respectively with men difference of 8197.60 Birr. The logistic regression analysis revealed that the number of livestock, irrigation access, and total annual income had positively and significantly influenced the adoption of agroforestry practices. However, distance from the market and extension services had negatively influenced the adoption of agroforestry practices. It is concluded that agroforestry practices contribute positively to household livelihood income. Therefore, it is suggested that farmers need to use knowledge based farming system and increase their awareness of the contribution of agroforestry practices. The study also recommends that infrastructure, particularly road access, be improved for credit and extension services.