Hot pepper (Capsicum frutescens L.) is cultivated widely in Uganda as an agricultural crop either in open field or in the agroforestry system. An economic assessment, using cost-benefit analysis, was carried out on hot pepper cultivation under agroforestry farming system and field observation in selected Grevillea robusta as a tree crop and hot pepper, Zea mays L. and Phaseolus vulgaris L. as agriculture crops intercropping in Kamuli district, Uganda between June-December 2004. The results from the Benefit-Cost Ratio (BCR) showed that hot pepper and Grevillea robusta agroforestry intercrop produced the highest economic returns compared to beans and maize monocultural systems. Grevillea and hot pepper intercropping also fulfilled the basic need of fuel wood from the pruning of branches and timber for furniture and house construction for the farmers. Though the price of hot pepper is variable, it can be grown as a cash crop which can contribute to the livelihood and poverty reduction in Uganda.