The chakra is the traditional agroforestry system of the Kichwa people in the Ecuadorian Amazon. Over time, it has incorporated cash crops (particularly cacao) as a way to improve the monetary income of indigenous households while preventing them from engaging in unsustainable practices. However, scarce empirical research has been conducted to determine if such a goal has been accomplished. Using data from a household survey (n = 330) conducted among the members of three cacao producer associations, we determined that households producing cacao in the chakra system are poorer and have lower land endowments than other Kichwa populations in the area. Cacao accounts for 42 and 19% of agricultural and total income, respectively, reflecting that, indeed, income from cacao is essential for the livelihoods of the Kichwa people. Multivariate analysis reveals that income from cacao is positively correlated with landholding area, but negatively correlated with the area in forest, probably reflecting that the need for monetary income encourages indigenous households to expand the area of chakra. The results also show that households having off-farm income and receiving social assistance are less dependent on cacao income. Overall, our findings reflect that, while an essential source of monetary income, income from cacao -alone- is not sufficient to meet household needs. Diversifying the basket of products with market value, strengthening research on agroforestry systems, and promoting chakra tourism are proposed as alternatives to increase monetary income and preserving the chakra system.