This study assessed stakeholders’ perception on the prospects and challenges of practising Climate–Smart Agroforestry in the Asunafo North Municipal Assembly in the Ahafo Region in Ghana. Interviewer administered questionnaires were used to collect cross-sectional data from 250 cocoa, food and cash crop farmers drawn from four (4) communities using simple random sampling. And nine (9) in-depth interviews were also conducted to elicit key stakeholder perspectives. Stakeholders also held the view that Climate-Smart Agroforestry encourages the use of stress-tolerant crop varieties, increase income, improve soil productivity, diversify farm produce, urges the reduction of input supply and recommends the timely usage of the inputs, ensures better market system for farm produce, cost of production decreases during the practice of Agroforestry, agro-ecological functions and Climate-Smart Agroforestry can best help adapt to the threats of climate change in the agriculture sector. The challenges included insecure tree ownership right, fast-declining soil fertility and long maturity period of Agroforestry trees, land tenure issues, illegal tree logging (chainsaw operators) on farms, lack of practical understanding of the approach, inadequate knowledge and information and inadequate supportive facilities in the study area. The study recommends further studies on the existing forest policy and legislations and its implications on the practice and adoption of Climate-Smart Agroforestry in respond to climate change in the area.