Mindanao produces 90% of the Philippines’ cacao output, yet smallholder farmers remain vulnerable due to persistently low yields and increasing soil and climate-related stresses. This policy brief analyzes the major production challenges facing cacao farming in Mindanao, emphasizing findings from land suitability assessments and field experiments in Davao City. Results highlight how soil fertility issues, drought-prone conditions, and mismanagement of farm inputs suppress cacao productivity. Evidence shows that applying organic fertilizers, using locally available mulches, and adopting targeted soil amendments can increase yields beyond the 2 kg/tree/year industry benchmark, while simultaneously boosting soil carbon storage and raising farm incomes by up to eightfold compared to prevailing practices. The brief advocates for scaling up nature-based solutions, strengthening localized capacity-building programs for farmers, and exploring inclusive carbon trading mechanisms to enhance resilience and ensure equitable benefits for smallholder cacao growers in Mindanao.