Agroforestry systems promise a high multifunctionality providing cash and subsistence yields as well as other ecosystem services. Such land systems may be particularly promising for smallholders in tropical landscapes due to high labour intensity and productivity on limited land. Focusing on Madagascar, we here describe the history of agroforestry in the country and review the current literature on agroforestry outcomes as well as factors promoting and hindering agroforest establishment and maintenance. From this, we discuss the potential future of agroforestry in Madagascar. Historically, many crops farmed today in agroforestry systems were originally introduced as plantation crops, mostly in the nineteenth century. Since then, people co-opted these crops into mixed agroforestry systems, often focusing on clove, vanilla, coffee, or cocoa in combination with fruit trees or, for clove, with livestock. Other crops are also integrated, but shares are comparatively low. Overall, 27.4% of Malagasy exports are crops typically farmed in agroforestry systems, providing income for at least 500,000 farmers. Outcomes of agroforestry for biodiversity and ecosystem services are commonly researched, showing benefits over annual crops and monocultures. Social-economic outcomes, including yields, are more scarcely researched, but findings point towards financial benefits for smallholder farmers and a sense of community and collective memory. However, findings emphasize that research gaps remain in terms of geographic and crop coverage, also for ecological outcomes. Looking to the future, we highlight the need to overcome hurdles such as land tenure insecurity, financial barriers to implementation, and unstable value chains to scale agroforestry in Madagascar to the benefit of multifunctional land systems and human wellbeing.