Using cross-sectional data, this study analysed the critical and significant socioeconomic factors with high likelihood to determine smallholder farmers’ decision and willingness to adopt jatropha into cropping systems in Malawi. Employing desk study and multi-stage random sampling technique a sample of 592 households was drawn from across the country for analysis. A probit model was used for the analysis of determinants of jatropha adoption by smallholder farmers. Empirical findings show that education, access to loan, bicycle ownership and farmers’ expectation of raising socioeconomic status are major significant factors that would positively determine probability of smallholder farmers’ willingness to adopt jatropha as a biofuel crop on the farm. Furthermore, keeping of ruminant herds of livestock, long distance to market and fears of market unavailability have been revealed to have significant negative influence on farmers’ decision and willingness to adopt jatropha. Policy implications for sustainable crop diversification drive are drawn and discussed.