Tedera (Bituminaria bituminosa C.H.Stirt var. albomarginata) is a drought tolerant perennial legume originating in the Canary Islands. This study evaluates the potential role and value of tedera in dryland mixed crop and sheep production systems in southern Australia. Regional variants of the bio-economic model MIDAS are used to assess tedera in farming systems at two locations. The analysis considers the quantity and quality of feed produced by tedera, the ability of other forages to complement or substitute for tedera and its impact on meat versus wool-producing sheep flocks. The results indicate that tedera offers the potential to increase farm profits by up to 26% and be grown on ~28% of a low rainfall mixed enterprise farm. On a high rainfall mixed enterprise farm tedera may boost profit by up to 58% and be grown on ~75% of the farm. The increase in profit is attributable to savings in supplementary feed and higher stocking rates.