Abstract: Diversity of tree species, management practices of woodlot in the homegarden and its contribution to the socio-economic condition of rural household has been studied in the offshore island of Bangladesh. Assessment was done by means of multistage random sampling. Based on the homestead size respondents were categorized into small, medium and large and a total of 45 homesteads 15 from each category were selected randomly for the study. The study reveals that the diversity of tree species was found to increase with the increase of homestead size of the respondent. A total of 76 tree species under 34 families were identified in the study area Floristic elements of the homestead flora consists of both native and exotics species. Most of the farmer (75.5%) preferred to plant fruit tree species for future plantation. Diversity and abundance of fruit tree species was found higher in all homestead. But recently fruit bearing were gradually being replaced by some exotic timber species such as Swietenia mahagoni, Acacia auriculiformis, Tectona grandis and Eucalyptus spp. etc. Bambusa spp., Albizia saman, Areca catechu, Cocos nucifera, Mangifera indica were in the top in species richness. The average annual income from homestead`s plant species was 5733.33 Taka. Lack of good seed/ seedlings, lack of technical knowledge and unavailability of space appeared to be the major constrains for planting trees. The major problems faced by the farmers in tree establishment and management were the damage caused by animals, storms, pest and insects.