Multifunctional agroforestry (MFA) systems are sustainable land-use systems that combine trees with crops and/or livestock to provide multiple ecological, economic and social benefits. However, evidence regarding their multifunctional ecosystem-service performance relative to conventional agroforestry (AF) and monocropping (MC) systems remains fragmented. Therefore, this review aimed to evaluate the ecological functions and ecosystem-service contributions of MFA systems through an evidence-based narrative review approach Literature published between 1990 and 2025 was reviewed to compare MFA, AF and MC systems for carbon sequestration, nutrient cycling, biodiversity conservation and soil-water conservation, with emphasis on widely used tree species such as Gliricidia sepium (Jacq.) Kunth, Leucaena leucocephala (Lam.) de Wit, Faidherbia albida (Delile) A.Chev., Azadirachta indica A.Juss., Pongamia pinnata (L.) Pierre and Grevillea robusta A.Cunn. ex R.Br. The review indicates that MFA systems generally exhibit greater carbon storage, higher annual sequestration potential, improved nutrient retention and recycling, enhanced biodiversity and superior soil and water conservation functions compared with AF and MC systems. These benefits are primarily associated with structural diversity, multilayer vegetation, continuous biomass inputs and stronger ecological interactions. However, system performance varies according to climate, soil conditions, species composition, management practices and system age. Overall, MFA systems represent a promising approach for climate-resilient agriculture and sustainable land management, although further long-term studies and standardised monitoring frameworks are required to strengthen evidence-based adoption and policy implementation.