Establishment of native timber trees on deforested land may contribute to the livelihood of farmers, to improved ecosystem services and to increased greenhouse gas uptake. Here, we present a new silvopastoral planting design to assess species performance and interspecific competition or facilitation effects among native timber and multipurpose trees in Central America. Two timber species, Tabebuia rosea and Cedrela odorata, were established in three low-density planting regimes allowing combined tree and future livestock production: (1) solitary planting, (2) companion planting with Guazuma ulmifolia, and (3) companion planting with the nitrogen-fixing Gliricidia sepium. We quantified survival, growth and reforestation potential of the two timber species subjected to the different planting regimes for the first 2 years after establishment. Nitrogen concentration as well as stable nitrogen and carbon isotope composition (d 15 N, d 13 C) of leaves of the timber saplings were determined. T. rosea showed higher survival and better growth than C. odorata under varying environmental conditions (soil, concomitant vegetation). Performance of the timber saplings was unaffected by either companion species. Planting regimes had no effect on foliar nitrogen concentration and d 15 N of the two timber species, although d 15 N values indicated nitrogen fixation activity in G. sepium trees. Planting regimes affected foliar d 13 C values in T. rosea. d 13 C values were significantly higher in solitarily growing individuals, suggesting lower exposition to water stress conditions in saplings surrounded by companion species. As we found positively correlated growth traits among timber and multipurpose trees, a combined planting may benefit farmers by providing additional goods and services.