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Introduction A field study was undertaken during 2021–22 in a three-village cluster located within the Chhattisgarh Plain Agro-Climatic Zone of Madhya Pradesh to evaluate the influence of traditional agroforestry systems on soil organic carbon (SOC) and nitrogen (N) reserves. The study examined how diverse land-use systems contribute to soil quality enhancement through carbon and nitrogen dynamics. However, a clear research gap exists in the region-specific quantification of SOC and nitrogen stocks under traditional, farmer-managed agroforestry systems in this agro-climatic zone. Most earlier studies have focused on mono-cropping or generalized agroforestry models, with limited landscape-level comparisons. The novelty of this study lies in its site-specific, comparative assessment of carbon-nitrogen dynamics across traditional agroforestry systems, generating empirical evidence from a relatively underexplored region and highlighting their role in soil fertility improvement and climate-resilient land management. Methods Eight land-use systems were assessed, namely Agri-silviculture (AS), Agri-horticulture (AH), Agri-horti-silviculture (AHS), Silvi-pasture (SP), Agri-silvi-pasture (ASP), Agri-horti-pasture (AHP), Home gardens (HG), and Cultivated land (CL). Soil samples were collected and analyzed for bulk density (BD), soil organic carbon (SOC), total nitrogen (TN), carbon and nitrogen stocks, and microbial biomass carbon and nitrogen (SMBC and SMBN). Data were subjected to statistical analysis, including one-way ANOVA for significance testing (P ≤ 0.05) and Principal Component Analysis (PCA) to identify major sources of variation among systems. Results Home gardens consistently demonstrated superior soil quality compared to other land-use systems, characterized by lower bulk density and markedly higher soil organic carbon (SOC), total nitrogen (TN), carbon and nitrogen stocks, and microbial biomass (SMBC and SMBN). In contrast, cultivated land exhibited greater soil compaction and comparatively reduced carbon, nitrogen, and microbial biomass levels. All soil parameters differed significantly among the land-use systems (P ≤ 0.05), indicating strong land-use influence on soil properties. Principal Component Analysis (PCA) revealed that the first two components together explained 75.71% of the total variation, with PC1 alone accounting for the majority share (65.14%), highlighting that carbon-nitrogen dynamics and microbial attributes were the dominant factors differentiating the systems. Conclusion The study demonstrates that traditional agroforestry systems, particularly home gardens and silvi-pasture, play a crucial role in enhancing soil organic carbon, nitrogen reserves, and microbial biomass compared to cultivated lands. The presence of perennial vegetation and diverse plant components contributes to improved soil structure, fertility, and biological activity. These results emphasize the ecological and agronomic benefits of integrating agroforestry practices for sustaining soil health and ensuring long-term productivity in the Chhattisgarh Plain Agro-Climatic Zone.