This article reviewed on agricultural intensification from livelihood and environment perspectives in mid-hills of Nepal. Agricultural intensification has provided improved economy, food security, employment opportunities, decision-making, labor division, local institutions and leaderships. But soil degradation has been accelerated along with greenhouse gases emission. Additionally, the potential linkages of agricultural intensification to degradation and pathways for marginalization in the long run are addressed. However, the catalytic role of institution and farmers' perception on intensification are equally important. To ensure socio-economically and environmentally sound production, sustainable agricultural intensification guided by good institutional systems is recommended.