Agroforestry has been and continues to be an integral part of the agricultural practices in rural Ethiopia. By virtue of its significance to mitigate climate change induced environmental challenges and diversify the livelihood of the society, agroforestry is an integrative approach to agriculture and natural resource management. However, much of its productive contribution has been remained untapped yet calling for a proactive focus in the policy frameworks. To date, a number of legislation and policy frameworks have been passed in the country to address and manage agroforestry and other land uses. For agroforestry to become a viable way to reduce rural poverty and persistent food insecurity, a stand alone policy and a more structured institutional setup is required.