Association of sabai grass ([i]Eulaliopsis binata[/i]) and blackgram ([i]Vigna mungo[/i]) was studied under three intercropping ratios viz., 1:1, 1:2 and 3:5 for two years under acid lateritic soil. Both sabai grass and blackgram were grown as sole crop for comparison. It was found that leaf yield of sabai grass was significantly higher in intercropping than in monoculture system with the maximum value under 1:2 ratio. Higher land equivalent ratio (up to 2.01) and monetary advantage index (as high as US $ 207.0) was recorded under 1:2 intercropping ratio. The growth and yield of blackgram were affected when intercropped with sabai grass as compared to sole crop. Intercropped blackgram recorded up to 68.7 0decrease in grain yield when compared with sole blackgram.