Agroforestry is a system of land use that incorporates the use of trees with either crops, livestock, or both. In Ethiopia, traditional agroforestry systems such as home gardens, parkland, border planting, woodlots, coffee-based, enset-based, and fruit-based systems have been used. Therefore, the goal of this review study was to gather, arrange, and analyse traditional agroforestry systems’ social, economic, and environmental contributions as well as the factors influencing their uptake. In Ethiopia, traditional agroforestry systems enhanced biodiversity and improved the livelihood of the society by providing cash income, fuelwood, pole, timber, fencing, indigenous medicines and food. Additionally, they increase soil fertility and restore biomass carbon in the range of 12 to 228 Mg ha⁻1. Despite their importance, a variety of factors have prevented farmers from implementing these agroforestry techniques. They include the uncertainty of tenure, the availability of land, the age of the family’s leader, labour, gender, degree of education, access to training, and the availability of water. Therefore, it is important to encourage agroforestry practices in order to increase production, raise soil carbon stocks, and conserve biodiversity. This can be done through offering training, equitable land sharing, and institutional stability