The level of participation in any production or farming activity is considered to be linked to the diversity of economic and other farming conditions in a farming community at any given time. Many expert-designed agroforestry programmes are adopted unevenly or not at all by the intended beneficiaries, especially in developing countries, because they are not built on existing experience with adoption of traditional agroforestry systems. The present study investigated the influence of economic and farming aspects on households’ adoption of traditional agroforestry, to suggest strategies for further strengthening agroforestry adoption. The study was carried out in Mandi district of Himachal Pradesh, an Indian state located in the western Himalaya. The main forms of traditional agroforestry in the study area are the agrosilvicultural, agrosilvihorticultural, silvopastoral, agrohortisilvicultural, hortiagricultural, and hortisilvicultural systems. The survey data were collected with a pre-structured questionnaire in personal interviews with household heads. The extent of agroforestry adoption was found to have increased significantly with increasing crop diversification, agricultural production, food sufficiency, agricultural income, off-farm income, total household income, number of livestock units, restrictions on on-farm grazing, and sale of horticultural as well as forestry tree produce from the farm. The study emphasizes the need for a holistic approach to agroforestry development by integrating agroforestry programmes into other economic and agricultural development programmes.