Background: Lentil (Lens culinaris) is a major rainfed crop cultivated in Bundelkhand region and Malabar Neem (Melia dubia), a fast-growing tree species of significant economic and ecological importance. This study underscores the ecological benefits of optimized tree spacing with lentil varieties in agroforestry systems for Bundelkhand region. Methods: The present study entitled was conducted during the year 2023-2024 employed a split plot design with four levels of tree spacings under main plot and two levels of lentil (Lens culinaris) varieties under sub-plot with three replications. Growth and yield analysis of lentil varieties was estimated along with effect of tree spacing on soil properties. Result: The results revealing that from main plot, the sole cropping (G(0)) and IPL 316 lentil variety (V-1) from sub-plot consistently outperformed intercropped treatments as it exhibited highest plant growth parameters, shorter number of days to 50% flowering and maturity along with higher yield attributes compared to the intercropped treatments. Yield decreased with increasing tree density, with the lowest values under the agroforestry system spaced at 5 m x 3 m (G(3)) spacing. However, intercropping improved soil health, with the highest soil physico-chemical properties and microbial activity recorded in the agroforestry system spaced at 5 m x 3 m (G(3)) spacing. Despite lower yields, intercropping promoted long-term soil sustainability. Overall, IPL 316 (V-1) was the best-performing variety and agroforestry with optimized tree spacing improved soil fertility in semi-arid regions.