Soil moisture increased with soil depth in Udic ferrosol profile, providing possibility of synergistic utilization of soil water in agro-forest cropping system. Analysis of soil water dynamics, however, shows no obvious synergy in utilization of or competition for water in soil between Choerospondias axillaris and peanut in alley cropping system. Change in soil moisture in the alley cropping system was not a key factor for decline in peanut yield and increase in Choerospondias axillaries biomass.