Agroforestry practice like any other land use practice has been reported to produce different benefits and products, which enhance household incomes and reduce poverty. This study was conducted in order to examine the contribution of agroforestry products to total annual household incomes and poverty reduction in semi-arid areas of Misungwi district, Mwanza Tanzania. Research methodologies used included literature review, questionnaire surveys, discussion with key informants and personal observation. A sample of 127 households engaged in agroforestry and non-agroforestry practices was selected randomly from six villages for questionnaire survey. Data analysis involved preliminary PRA information analysis with the community right in the field, content analysis and SPSS computer program. Three well-being levels of households namely; rich, medium and poor were identified. Agroforestry participants were richer than non participants with extra income of Tshs 954 611 (760 US$) per year. The agroforestry technologies practiced in the area included woodlot (37.7%), boundary planting (4.0%), Ngitili (15.2%) and indigenous live fence (20.8%). Agroforestry products and benefits, mainly generated from woodlots included poles (80.0%), fuelwood (86.0), timber (92.0%) and thatch grasses (32.7%). In comparison wood products from agroforestry practices contributed only 5.5% to total annual household incomes to agroforestry households while agriculture practices contributed about 51% to both agroforestry and non-agroforestry participants. In the regression model, wood products was not statistically significant at p<0.05 but positively correlated to total annual household incomes while agriculture and livestock keeping were statistically significant at p<0.01. This study concludes that agroforestry practices in the district do not contribute much to the total annual household income because it is constrained by small amount of trees established and poor selling price. It is recommended that more extension services and support be provided to agroforestry participants and otheriii farmers in the district to accelerate national poverty reduction and meeting Millenium Development Goals.Ministry of Natural Resource and Tourism (MNRT)