Coconut (Cocos nucifera) i s one of the most widely grown tree crops in the tropics. More than 90% of the crop is in the countries of Asia and Pacific regi on. In these countri es, large areas are pi anted with coconut as a monoculture. Most of the world's production of coconut is from small holdings which produce the bulk of the coconut crop in many countries. In the recent past coconut production in many countries has remained stagnant or declined. Coconut Based Farming Systems (CBFS) help to maximise land use and farmers income, enhance employment opportunities, enables diversification of farm produce and alIows selection of crops. It al so serves as a form of i nsurance agai nst fluctuations of coconut. The rationale for the development of CBFS with special reference to land use intensification, bio-physical basis and socio-economic considerations are discussed while common 1y used farming systems in several countries are described. The major constraints against the development of CBFS are financial problems, inadequate organisational support and lack of technologies. In developing CBFS, it is necessary to consider basic needs of the farmers and risks involved in recommendations on farm. The farming system perspective should be an integral part of applied and adaptive research. It requires the integration of physical, biological and socio-economic considerations that influences farmers acceptance of new technology.