Species diversity and economic returns of five different components namely timber, fruit, fuelwood, vegetables and non-timber forest products (NTFPs) in homestead agroforestry system were studied at two smallest administrative units (Union) namely Betagi and West Demsha under Chittagong district. Most of the available species under each component at both locations were common. With little exception, the frequency distribution of each component species was similar in all household categories at each study location. Tree components for timber and fruit
were more in West Demsha than in Betagi, whereas components for fuelwood, vegetables and NTFPs were more in Betagi. However, the economic returns from vegetable component were more than those from any other component in both the study locations. The results indicated that homestead agroforestry systems in the study locations were traditional, and generally immediate income generating component like vegetables had been selected by the small and medium households in the establishment of such system.