Amaranthus hypochondriacus was planted in the inter spaces of Simarouba glauca at different distances and in open field conditions to find out the compatibility of the grain crop with that of an oil bearing tree crop. Among the distances from the tree base and pure crop, the open field condition was found to perform well compared to the intercrop. When the distance from tree base was considered, 2.0 m level produced more yield than the other treatments. Soil fertility was found to be reduced under intercropped conditions. Microclimatic factors were found to be ameliorated in the agri-silvicultural system. Light Transmission Ratio (LTR) and air temperature were found to be reduced under intercropped condition.