Alternate land uses that restore ecological balance with economic viability are desirable. Alternate land uses, that is, horti‐pasture systems (HPSs) with Emblica officinalis and Psidium guajava trees and pasture (Cenchrus ciliaris + Stylosanthes seabrana), were introduced with different soil moisture conservation measures (staggered contour trenches [T1], continuous contour trenches [T2], stone mulch [T3], vegetative barriers [T4], and control [T5]) for reclamation of degraded land and to test their capacity to perform ecological functions and provide economic return to the farmers. After 10 years, T1 increased soil organic carbon by ~58% and 15% over control in Emblica‐ and Psidium‐based HPS, respectively. T1 stipulated fruit and pasture yield by ~45% and 90% and 32% and 22% over control plots, in those HPS, respectively; T1 also improved fodder and fruit quality. Changing climates significantly affected the fruit and pasture yield. Despite this, T1 assured a benefit–cost ratio of 3.78 and 4.23 in those HPSs, respectively. The sustainable yield index for fruit and pasture in T1 were approximately (a) 1.85 and 1.68 and (b) 1.33 and 1.25 times higher than control, for Emblica‐ and Psidium‐based HPS, respectively. Soil moisture conservation could enhance profit by ~30% and 20% in those HPSs, respectively over control. T1 can potentially recycle approximately (a) 83%, 77%, and 71% and (b) 62%, 122%, and 81% higher N, P, and K than control in those HPSs, respectively. Thus, Emblica‐ and Psidium‐based HPS with staggered trenching could be replicated on a wide scale to enhance income, ensure fodder supply, and improve degraded land.