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The use of medicinal plants is a centuries-old tradition to cure several human ailments in India. Plants are the major ingredients in most of the medical formulations developed by the traditional healers and Ayurvedic pharmaceutical industries. With the growing demands of medicinal plants day by day in the Indian system of medicines, the majority of medicinal plants species are being collected widely from forests and natural habitats leading to rarity, threat, extinction or genetic loss of many important plants. The export market potential for medical plants species appears to be faster than Indian domestic market which enhances the depletion of the natural resources. Conservation of medicinal plants through the practice of sustainable farming and understanding the need for more equitable management of natural resources should be given utmost importance. Out of two basic approaches of conservation viz. ex-situ and in-situ, the paper focuses on the cultivation of medicinal plants in agroforestry system for augmenting livelihood condition and managing rural health needs vis-à-vis to preserve this floral diversity.