Societal Impact StatementLavaka, large gullies in Madagascar, can cause problems for farmers and for infrastructure, but these features also have beneficial aspects that have generally been overlooked. They provide plant refugia, and commonly host species that would otherwise not thrive on the grassy uplands. Farmers sometimes make use of lavaka to plant crops that require more protection or soil moisture. Colonial narratives blame lavaka erosion on poor land management but ignore their pre‐human‐settlement existence on the landscape and the ecological functions they serve. The knowledge and wisdom of Malagasy farmers are key to better understanding the complex roles that lavaka plays in the landscape.SummaryThis paper combines a review of lavaka—erosional gullies in Madagascar's grass‐covered highlands—with new observations of their importance as ecological patch environments for a wide range of plants not seen elsewhere within the grassy biome. Lavaka play a role as a natural refugia for flora that would otherwise not thrive on the exposed and infertile hillslopes, and local farmers exploit their topography and sediment deposits to grow a variety of crops. We provide a classification scheme for lavaka based on the extent to which they have been colonised by vegetation. Our analysis is based on observations made over many field seasons in the highlands as well as interviews with Malagasy farmers living with lavaka on their land. We emphasise the importance of local knowledge and environmental wisdom in the analysis of landscape evolution, and we conclude that lavaka, while certainly an erosional problem in many places, can nonetheless provide valuable ecosystem services and agricultural opportunities that should not be overlooked.