Agroforestry, the integration of trees and shrubs with crops and/or livestock, stands as a pivotal strategy in sustainable land management and climate action. This review synthesizes current knowledge and practices of agroforestry, focusing on its diverse systems, contributions to sustainable land management, role in climate change mitigation and adaptation, and the challenges and future prospects, with a special emphasis on the Indian context. Agroforestry systems, classified into silvopastoral, agrosilvicultural, and silvoarable, along with specialized practices like alley cropping and forest farming, demonstrate significant adaptability across various climatic and geographical regions. These systems have shown promising results globally, evident in case studies highlighting their effectiveness in different environmental settings. In the realm of sustainable land management, agroforestry is instrumental in soil conservation, enhancing soil fertility, and nutrient cycling. It also plays a critical role in biodiversity conservation and the enhancement of ecosystem services, such as water regulation and pollination. Socioeconomically, agroforestry contributes to improving livelihoods and economic resilience, as demonstrated in various local community case studies. In addressing climate change, agroforestry systems are notable for their carbon sequestration capabilities. Compared to traditional agricultural practices, these systems exhibit a higher potential for carbon storage, both above and below ground. They also enhance resilience to climate extremes, offering adaptive strategies for farmers and communities facing climatic variability. Policy and global initiatives increasingly recognize agroforestry's role in climate action, with international agreements and organizations fostering its integration into national policies. The implementation of agroforestry is not without challenges. Technical complexities, the need for site-specific knowledge, economic and policy barriers, and sociocultural factors pose significant hurdles. For India, a country with diverse agro-ecological zones, these challenges are coupled with opportunities for research, technological innovation, policy improvement, and global-local collaborations. The future prospects for agroforestry are vast, particularly in the Indian context, where it can significantly contribute to sustainable agriculture and rural development. Continued research, policy support, and collaborative efforts are essential to fully realize the potential of agroforestry in environmental conservation, climate change mitigation, and socioeconomic development.