Lablab purpureus is a multipurpose drought-tolerant leguminous crop that is central to the boost in resilience and sustainability of the small holder farming systems in the dry and marginal conditions. As the challenges of climate variability, soil erosion and water scarcity continue to increase, there is a rising demand to find crops that have high water-use efficiency (WUE), low-input adaptability, and a variety of ecosystem advantages. The objective of this chapter is to give a comprehensive insight of the physiological, biochemical, morphological and agronomic characteristics which allow Lablab to survive in a water-limited and stressful environment, and highlight the inclusion of Lablab in agroforestry systems to achieve sustainable production. Lablab has been found to enhance soil moisture capture by 15–20%, above ground biomass by 18–25%, and grain yield to 2.4 t ha−1 in conservation agriculture as compared to conventional methods. This is due to its deep rooting, osmotic adjustment, and antioxidant defenses, adaptive leaf-stem characteristics, all of which make it drought resilient and efficient in the use of water. Intercropping of cereals or incorporation in alley cropping systems also stabilize yield, increase the quality of fodder, and increase nutrient cycling. Residue retention, reduced tillage, and the diversification of legumes have been identified as mitigation strategies that are more effective in enhancing yield stability, decreasing soil erosion, and enhancing the overall agroecosystem services to be more climate resilient. Future research aims at enhancing genomic improvement, high-throughput phenotyping and scaling up agroforestry-based Lablab systems.