<p>Tree farming investments contribute both socio-economic and environmental benefits through livelihoods improvement, curbing deforestation and mitigating climate change. However, despite various initiatives to improve rural livelihoods particularly in the global south there is still struggle to come up with desirable strategies to enhance the benefits. Recently, there has been an emerging planting activity, more particularly, the establishment of pine and eucalyptus woodlots in the Kagera region, Tanzania; yet, despite being inadequate planting, but factors influencing decision for such investment by households are often not well known consequently hinder advancement of policies promoting tree farming investments. In order to understand appropriate approaches to enable investment in pine and eucalyptus trees this study was conducted in the region. The study employed a cross-sectional design to study 80 households (40 with and 40 without pine and eucalyptus woodlots) randomly selected from four purposively selected villages in the region. A binary logistic regression was employed to assess factors influencing households’ decision to invest in pine and eucalyptus woodlots. The findings revealed that farm size, age of household head, land not suitable for agricultural crops production, loan and credit accessibility, and education level of household head significantly (<i>p</i> &lt; 0.05) influenced household’s decision to invest in pine and eucalyptus farming. Hence, households with comparative large farm size, land not suitable for agricultural crops and youth individuals should consider opting to invest in pine and eucalyptus tree farming a relevant alternative source of income.</p>