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Agroforestry is recognized as a sustainable land use practice. However, the uptake of such a promising land use practice is slow. Through this research, carried out in a Terai district of Nepal, we thoroughly examine what influences farmers’ choice of agroforestry adoption and what discourages the adoption. For this, a total of 288 households were surveyed using a structured questionnaire. Two agroforestry practices were compared with conventional agriculture with the help of the Multinomial Logistic Regression (MNL) model. The likelihood of adoption was found to be influenced by gender: the male-headed households were more likely to adopt the tree-based farming practice. Having a source of off-farm income was positively associated with the adoption decision of farmers. Area of farmland was found as the major constraint to agroforestry adoption for smallholder farmers. Some other variables that affected positively included livestock herd size, provision of extension service, home-to- forest distance, farmers’ group membership and awareness of farmers about environmental benefits of agroforestry. Irrigation was another adoption constraint that the study area farmers were faced with. The households with a means of transport and with a larger family (household) size were found to be reluctant regarding agroforestry adoption. A collective farming practice could be a strategy to engage the smallholder farmers in agroforestry.