A homestead is an integrated production system where trees, crops, livestock and poultry are found in and around the household residence in Bangladesh. It is a potential production unit that provides various product, service and ecological functions. Almost all people in Bangladesh including landless households have homesteads in which they grow trees and crops even in a small piece of land. This study characterizes the species composition, diversity and productivity of the homestead production system in the Teknaf peninsula, southeastern Bangladesh. Survey data collection was from a total of 180 homesteads covering five household categories: large, medium, small, marginal and landless. Vegetable, fruit, timber, and livestock and poultry were common components in the homestead production system. Various types of plants were mainly concentrated in back yards, front yards, boundaries and corners of homesteads. The mean number of tree species per homestead was about 15. In total, 189 tree and shrub species were recorded, and were distinctly high and low in the large (363.7) and landless (55.7) household categories. Species composition, diversity and productivity of homesteads were found to be related to household categories. Richness and diversity of tree and shrub species increased with household size. Betel nut was the dominant tree species followed by mango, jackfruit and coconut. Annual income from homesteads also varied among the household categories, with a mean contribution of the homestead to annual income of about 25 %. A large portion of homestead income came from betel nut trees. There is scope to increase species diversity and income by designing homesteads with the engagement of women and other family members.