Horti-silvi-pasture (HSP) systems offer a climate-resilient strategy to improve fodder productivity and sustainability in semi-arid areas. This study assessed two HSP systems, Holoptelea integrifolia + Punica granatum (H1) and Holoptelea integrifolia + Annona squamosa (H2), across two spacings (5 m × 5 m and 5 m × 4 m) to determine their impacts on the growth, yield, and nutritional quality of BN hybrid grass, as well as tree biomass and carbon dynamics during 2024 and 2025 in Bundelkhand, India. The H2 system markedly enhanced growth attributes, achieving greater plant height (130.85 cm), shoots per m2 (149.55), and leaf area index (4.21) in pooled analysis. It also yielded superior green (27.97 t ha− 1) and dry forage (6.17 t ha− 1) compared to H1. The proximate composition improved under H2, exhibiting elevated levels of crude protein (8.45%), crude fiber (61.64%), and total ash (13.57%). Increased spacing (5 m × 5 m) enhanced the growth and yield of BN hybrid grass, while reduced spacing (5 m × 4 m) led to comparatively elevated fiber fractions and biochemical components. Among tree species, H. integrifolia (5 m × 4 m) demonstrated the greatest biomass (4.60 Mg ha− 1), carbon stock (2.90 Mg ha− 1), and CO₂ mitigation potential (10.64 Mg ha− 1). Correlation study revealed significant positive correlations between growth attributes and yield, but fibre fractions exhibited negative correlations with growth attributes. The study illustrates that ideal species combinations and spacing in HSP systems can markedly enhance fodder yield, nutritional quality, and carbon sequestration, providing a sustainable approach for climate-resilient livestock farming systems.