A species ofSporothrix was consistently isolated from leaf spots and serious shoot infections on a clone ofEucalyptus grandis in Northern Natal, South Africa. The fungus was morphologically distinct from other species in the genus and is consequently described as a new taxon,S. eucalypti. Sporothrix eucalypti was shown to be highly virulent in pathogenicity tests on a number ofE. grandis clones. Significant differences amongst susceptibility of clones were also detected in these tests.Sporothrix eucalypti represents a new pathogen ofEucalyptus that has the potential to cause substantial damage to this host in South Africa and probably elsewhere in the world.