Land degradation poses a critical challenge to environmental sustainability and human welfare. Agroforestry has multifaceted opportunities to restore degraded lands. The diverse causes of land degradation like deforestation, overgrazing, unsustainable agricultural practices, and climate change need to be adequately addressed along with their far-reaching environmental, economic, social, and geopolitical impacts. Agroforestry, which deliberately integrates woody perennials with agricultural crops and/or animals, is a promising approach to land restoration. There is an urgent need to understand various agroforestry systems and their mechanisms for rehabilitating degraded lands, focusing on soil improvement, biodiversity enhancement, water management, and carbon sequestration. An in-depth analysis of how these systems contribute to ecosystem restoration while simultaneously offering economic benefits to farmers is very important. The challenges and limitations in implementing agroforestry systems, including technical complexities, socioeconomic barriers, and policy constraints need adequate attention. Further, future research needs, possible policy recommendations, and strategies for scaling up successful agroforestry practices should be emphasized. Thus, an attempt is made to understand the role of agroforestry in the growing body of knowledge on sustainable land management practices and their potential to address global environmental challenges.