He wrote the music to several continually popular songs, such as Spurven sidder stum bag Kvist (Sparrow sits silent behind Kvist) and Jeg ser de bøgelyse Øer (I see the Light Beech Islands). Alongside such composers as Carl Nielsen, Oluf Ring and Thomas Laub, he is considered one of the innovators of Danish popular music.
In memory of Aagaard, a statue was designed by Søren West and erected in Th. Aagaard Square, by Ryslinge's Valgmenighed (Voluntary Congregation), where Aagaard served as organist for several years.
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