Agro-tourism—also known as farm tourism or agri-tourism—is increasingly recognized as an innovative model for rural development. It integrates farming activities with tourism services, creating income diversification, cultural exchange, and sustainable development opportunities in rural regions. This study examines the socio-economic and environmental impacts of agro-tourism across four countries (India, Spain, Thailand, and Kenya) through field surveys (N = 1,200), stakeholder interviews (N = 260), and economic analysis of 28 agro-tourism clusters. Results show that agro-tourism increases rural household income by 30–45%, boosts agricultural value chains, strengthens women’s entrepreneurship, reduces rural–urban migration, and improves environmental conservation practices. However, challenges include infrastructural gaps, marketing limitations, and the need for skill development and policy support. This paper provides actionable insights for adopting agro-tourism as an effective rural development strategy.