Restoration of degraded pasture lands in the tropics through afforestation is widely supported. The greatest obstacle to afforestation, however, is the long delay before initial financial returns from wood harvesting are realized. Interplanting young trees with food or energy crops has been proposed as a strategy to help overcome this obstacle. We investigated the impact of this practice on the survival and growth performance of young tropical tree seedlings in Panama. Five native timber tree species and the exotic species Tectona grandis were interplanted with four different crop rotations and monitored over 2 years. Survival of young tree seedlings was up to eight times higher when planted in association with Manihot esculenta. Only during the first 3 months after maize sowing was a significant negative effect of intercropping on tree seedling survival found. Here, survival rate of tree seedlings was up to four times lower than in the pure plantation. Tree growth was not adversely affected by crops. In fact, Astronium graveolens, Cedrela odorata and Terminalia amazonia showed significantly superior growth performance in association with both Zea mays and Cajanus cajan. When combined with the latter, the height increment of these tree species was up to four times that achieved in pure plantations. We conclude that intercropping can be an important silvicultural practice to facilitate forest restoration. Multi-purpose shrubby crop species with cropping cycles of more than 6 months are particularly beneficial, as they quickly shade out grasses, thus reducing the need for herbicides.