Agroforestry systems (AFS) integrating guava trees with fodder crops offer a promising approach to address the challenges of poverty, land degradation and climate change in the Vindhyan region. However, comprehensive evaluations of yield performance and system interactions remain limited. This study evaluates the trade-offs between yield and forage quality in a guava-based AFS with fodder pearl millet in India's Vindhyan region, while optimizing nitrogen (N) management strategies using conventional and nano-urea (NU). A split-plot design assessed two land-use systems viz., sole pearl millet and AFS, across eight N management treatments. Results showed that AFS reduced green and dry fodder yield by 19.8% and 21.9%, respectively, compared to sole cropping. However, it significantly improved fodder quality, with 18.0% increase in crude protein, 5.2% reduction in neutral detergent fibre, 3.6% reduction in acid detergent fibre, and enhanced digestibility indices. Optimal N strategy (75% RDN + 4 ml l- 1 NU; T6) increased green fodder yield by 48.6% under the AFS and by 46.3% under sole cropping compared to the control. Compared to sole fodder pearl millet, AFS significantly improved soil bulk density, organic carbon and available nitrogen, phosphorus, potassium, and carbon storage capacity. Economic analysis over a single season (2022) highlighted AFS's superiority, with high net returns of Indian Rupee127,897.77 ha- 1 (1565.26 USD ha- 1) and B:C ratio (2.13), while T6 under AFS delivered the highest net returns of Indian Rupee142,426.79 ha- 1 (1743.08 USD ha- 1). Overall, guava-based AFS with precision N management balances fodder yield, quality, and soil health, offering a sustainable pathway for livestock feed security in India's semi-arid tropics.