Alley cropping (or contour hedgerow intercropping) has been developed and promoted in the tropics since early 1970s. Alley cropping has been regarded as a promising agroforestry technology for conserving farming and sustainable use of sloping lands in the humid and sub-humid tropics of Africa, America and southeastern Asia. It was introduced to China in the beginning of 1990s. Satisfactory progress has been achieved in research and demonstration in dry valley of the upper Yangtze River and in Three Gorges Region by integrating local needs with natural resources. Achievements of studies and extension of contour hedgerow intercropping in China during the past decade are reviewed, which shows hedgerow intercropping is suitable for soil and water conservation, soil fertility amelioration, land productivity improvement, and bio-terrace formation in mountains, and increased options for income generation based on local resources. Some misunderstandings of the system in China are cleared and some suggestions for further research are also presented.