The term sylvo-pastoral system refers to the production technique which integrates livestock, pastures and tree growing so as to get maximum benefit from a unit area of land. Advantages of this kind of integration include additional income from stock sale, reduction of the cost of weeding of the plantation, prevention of fire risk in the young plantation and improvement of soil fertility by growing legume fodder and production of cow dung. In Thailand the forest villages were established in a number of areas and the integration of the livestock into forest plantations was first implemented in 1979 by the Forest Industry Organization. Subsequent studies have revealed that an extra-income of US$ 73.3 per family was obtained from stock sale. The villagers in the forest village are encouraged to adopt this system. Approach to produce sustainable fodder for livestock in the system is outlined. Fourteen native forage species which are shade-tolerant are listed. Recommended improved species are Centro, Puero, Desmodium ovalifolium, Calopo, Guinea, Ruzi, Cori and Signalgrass. Suitable tree legumes are Leucaena,Sesbania, Gliricidia and Erythrina. The author proposes that the agro-forestry system should receive high priority consideration not only for increasing the earnings of the villagers but also for protecting the valuable forest land of the country.