Recent observations of microlensing events in the Large Magellanic Cloud suggest that a sizeable fraction of the galactic halo is in form of MACHOs with mass less than abou 0.1 M_{odot}. Here we argue that molecular clouds (mainly H_2) located in the galactic halo can contribute substantially to its total mass. We outline a scenario in which dark clusters of MACHOs and molecular clouds naturally form in the halo at large galactocentric distances. Possible ways of detecting MACHOs via infrared emission and molecular clouds via the induced gamma-ray flux are discussed. Molecular clouds located in the M31 dark halo could be discovered through cosmic background radiation (CBR) anisotropies or emission lines in the microwave band.
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