Agroforestry practices provide multiple ecosystem services in agricultural landscapes. However, within the local context, local communities hold divergent perceptions regarding the various roles of agroforestry, particularly in the Afrotropical Region. Hence, understanding these drivers is critical for adopting and promoting sustainable agroforestry practices. Here, we examined the factors that influenced farmers’ perceptions towards the socioecological benefits of agroforestry practices. A multistage stratified random sampling technique was applied to select 90 households along an urban-rural gradient. The data were gathered through semi-structured questionnaires and key informant interviews and analyzed using a descriptive statistics, chi-square tests, general linear model, and redundancy analysis with the help of R software version 4.3.2. The findings showed that approximately 69.7% of the respondents strongly agreed that agroforestry practices had benefits for society and the environment. However, 11.1% were neutral, and the others disagreed. The results of the general linear model analysis showed that household age, agricultural experience, access to land certification books, and training on tree conservation had a significantly positive effect on farmers’ perceptions of the advantages of agroforestry practices. Furthermore, farmers’ perceptions of the benefits of agroforestry in terms of income generation, educational and cultural values, and climate change mitigation were dependent on household age and farming experience. Overall, this study provides useful insights into the drivers of farmers’ perceptions of the advantages of agroforestry practices in Northwest Ethiopia. The findings of this study underscore the need for policymakers and practitioners to consider sociodemographic and institutional factors that influence farmers’ perceptions when developing policies and plans to advance the adoption and promote sustainable management of agroforestry practices. This supports the widespread adoption of agroforestry practices in tropical agroecosystems.