The present study analyzed the economic viability of poplar based agro-forestry system in Punjab. Primary data were collected from a sample of 60 adopters and 32 non-adopters of agro-forestry from 4 clusters of villages from Ludhiana and Ropar districts of Punjab state pertaining to year 2013-14. Two types of agro-forestry systems AFS-I (wheat + kharif fodder during 1st four years of poplar cultivation) and AFS-II (sugarcane for first two years and wheat during 3-4 years) were identified. The establishment cost was estimated at ` 7,871 per acre for an average farmer. The operational cost was worked out at ` 3,724 during 1-4 years and ` 2,919 during 5-6 years of plantation in AFS-I on per acre basis. The per acre operational cost in AFS-II was estimated at ` 1,904 during 1-2 years, ` 5,071 during 3-4 years and ` 3,630 during 5-6 years of poplar plantation. The net returns were ` 2,02,463, ` 2,05,283 and ` 2,29,720 in AFS-I and ` 2,19,015, ` 1,78,832 and ` 2,00,639 in AFS-II at 4th, 5th and 6th years of harvesting on per acre basis. The benefit-cost ratio and net present value were the highest at 5th year of harvesting in case of AFS-I and AFS-II. The analysis of benefit-cost ratio and net present value showed that the investment in poplar cultivation is considered to be economically viable during the study year.