Coconut (Cocos nucifera)-based agroforestry systems hold promise as a sustainable land use activity in the Melanesian islands, where food dependency on foreign sources and land shortages are increasing dramatically. This chapter describes the dynamics of these smallholder production systems in the Malo Island of northern Vanuatu (Melanesia), where a dual economy operates in which resources are dedicated to both subsistence and commercial production. The floristic elements found in the coconut plantations were typical of those described in the humid tropical homegardens elsewhere, with an average of 12 tree species per plot. Mean Shannon Weaver index was 1.57 with the vertical profile of vegetation having one-to-five strata. Although the coconut palms dominate these production systems, in certain cases other trees may dominate it. Situations in coconut plots evolve throughout the development phase of the palms. Based on that, five types of smallholder coconut-based agroforestry systems were recognized, which falls into two main evolutionary patterns: (1) a perennial occupation of the cultivated land by coconut trees, because of coconut replanting, and (2) a gradual return to tree fallow in which the coconut palms gradually disappear because of changes in the complex multistrata vegetation.