The study was conducted in twelve villages of four unions under Gopalpur upazila in Tangail district of Bangladesh to explore the diversity of multipurpose tree species in the homesteads and its impact on the livelihood of the farmers in 2016. Study sites were selected purposively as the location. A total of 3334 farmers of the 12 villages constituted the population of study. A sample of 12% farm families was selected based on stratified random sampling procedure. Thus 400 farmers were selected. However, 80 farmers were selected from 400 sampled farmers by using Yamane formula. Therefore, these 80 farmers constitute the sample for this study. Five percent (0.05) level of probability was used as the basis for rejection of any null hypothesis throughout the study. Data for the study were collected through personal interview by the researcher himself during 15 May to 25 December, 2016 using the interview schedule. Farmer’s opinion regarding multipurpose tree species in the homesteads and its impact on socio-economic development was the dependent variables of the study. Ten characteristics are age, education, occupation, family member, farm size, homestead area, annual income, socio-economic aspects, knowledge on Multipurpose Tree Species (MPTs) in homestead agroforestry and problem confrontation constituted the independent variables of this study. Species diversity of MPTs in the homesteads agroforestry was measured by Shannon-wiener index (H). In case of all species, highest index (H) value found in Jhaoail union (H=3.017) and lowest index (H) value found in Dhopakandi union (H=2.967). Among these 75 different plant species, Akashmoni (12.53 %), Jackfruit (18.28 %), Neem (1.45%), Bamboo (3.72%), Mander (2.03%) were found as dominant trees for timber, fruit, medicinal, fodder and fuel wood species respectively. MPTs had direct impact on income of the farmers. Small farmers had average income 13.21 thousand taka, Medium farmers had average income 29.33 thousand taka and large farmers had average income 45.79 thousand taka from MPTs in homesteads.