Apple-based agroforestry plays a vital role in enhancing farmers' socioeconomic well-being. This study investigates the adoption of apple-production and assesses impact on household income in Banja district, using data from 341 households selected through a multi-stage sampling technique. Primary data were collected through household surveys and interviews, supplemented by secondary sources. Descriptive statistics were used for preliminary analysis, while binary probit and endogenous switching regression (ESR) models were employed to examine adoption drivers and estimate income impacts, respectively. Results indicate that 49% of sampled households adopted apple- production. Household size, frequency of extension contact, apple production training, farming experience, seedling access and cost, landholding size, and access to market pricing information are all important elements in promoting applebased agroforestry adoption. In contrast, older age of the household head and pest or disease prevalence had a negative impact on adoption. Adopters of apple production earned 42,283 ETB, while non-adopters would have experienced a 12,074 ETB decrease in income if they had adopted the practice. According to the findings suggest that policymakers, extension agents, and local agricultural offices should promote adoption through targeted capacity building and sustained extension support.