In developing countries like India, the rural economy, which relies heavily on livestock, is significantly influenced by the silvipasture system (SPS). Integrating silviculture/horticulture with livestock rearing is a practical option that not only benefits farming communities but also reduces their economic vulnerability. SPS is a traditional choice in arid and semi-arid regions of the nation, where harsh conditions negatively impact the social, ecological, and economic aspects of growth. The SPS not only directly benefits farmers and animals but also holds ecological significance. SPS are increasingly acknowledged for their ability to capture atmospheric carbon and enhance overall carbon storage through grasses and trees, providing a mitigation strategy against the impacts of greenhouse gases. Soil fertility is notably improved under SPS compared to areas without SPS adoption. The introduction of SPS intervention, coupled with soil and water conservation measures, led to a significant enhancement in both the quantity and quality of grass biomass. Therefore, it is recommended to establish SPS aimed at obtaining nutrient and protein-rich fodder consistently throughout the year. This approach can contribute to increasing livestock output and reducing the financial burden on farmers associated with purchasing feed. Extensive research has been done for developing suitable SPS for specific regions, considering agro-climatic variables and implementing effective managerial interventions. Standardized factors for tree management, including the age of the first harvest, cutting height, and cutting interval, have been established for certain species. Therefore, SPSs have the potential not only to generate financial profits but also to establish a sustainable system with numerous environmental benefits. Consequently, this review has been made meticulously to explore the possibilities of the SPS from socio-economic and ecological perspectives within the Indian context.