Increasing demands for livelihood resources in tropical rural areas have led to progressive clearing of biodiverse natural forests. Restoration of abandoned farmlands could counter this process. However, as aims and modes of restoration differ in their ecological and socio-economic value, the assessment of achievable ecosystem functions and benefits requires holistic investigation. Here we combine the results from multidisciplinary research for a unique assessment based on a normalization of 23 ecological, economic and social indicators for four restoration options in the tropical Andes of Ecuador. A comparison of the outcomes among afforestation with native alder or exotic pine, pasture restoration with either low-input or intense management and the abandoned status quo shows that both variants of afforestation and intense pasture use improve the ecological value, but low-input pasture does not. Economic indicators favour either afforestation or intense pasturing. Both Mestizo and indigenous Saraguro settlers are more inclined to opt for afforestation.

High landscape diversity is assumed to increase the number and level of ecosystem services. However, the interactions between ecosystem service provision, disturbance and landscape composition are poorly understood. Here we present a novel approach to include uncertainty in the optimization of land allocation for improving the provision of multiple ecosystem services. We refer to the rehabilitation of abandoned agricultural lands in Ecuador including two types of both afforestation and pasture rehabilitation, together with a succession option. Our results show that high compositional landscape diversity supports multiple ecosystem services (multifunction effect). This implicitly provides a buffer against uncertainty. Our work shows that active integration of uncertainty is only important when optimizing single or highly correlated ecosystem services and that the multifunction effect on landscape diversity is stronger than the uncertainty effect. This is an important insight to support a land-use planning based on ecosystem services.

If tropical farmers cannot be provided with sustainable land‐use systems, which address their subsistence needs and keep them gainfully employed, tropical forests will continue to disappear. We looked at the ability of economic land‐use diversification – with reforestation of tropical “wastelands” as a key activity – to halt deforestation at the farm level. Our ecological–economic concept, based on land‐use data from the buffer area of the Podocarpus National Park in southern Ecuador, shows that stopping deforestation after 10 years is possible without violating subsistence demands. Tropical, farm‐level diversification may not only reduce total deforestation by 45%, but also increase farmers' profits by 65%, because the formerly unproductive wastelands have been returned to productive land use. We therefore conclude that a “win–win” scenario is possible: the subsistence needs of people can be reconciled with conservation objectives. However, inexpensive microcredits (at interest rates below 6%) and experience on alternative land‐use opportunities must be offered to farmers.