Wood has a wide variety of uses and is arguably the most important renewable raw material. The composition of xylem cell types in wood determines the utility of different types of wood for distinct commercial applications. Using expression profiling and phylogenetic analysis, we identified many xylem-associated regulatory genes that may control the differentiation of cells involved in wood formation in Arabidopsis and poplar. Prominent among these are NAC domain transcription factors (NACs). We studied NACs with putative involvement as negative (XND1 from Arabidopsis and its poplar orthologs PopNAC118, PopNAC122, PopNAC128, PopNAC129), or positive (SND2 and SND3 from Arabidopsis and their poplar orthologs PopNAC105, PopNAC154, PopNAC156, PopNAC157) regulators of secondary cell wall synthesis. Using quantitative PCR and in situ hybridization, we evaluated expression of these Populus NACs in a developmental gradient and in association with reaction wood and found that representatives from both groups were associated with wood-forming tissue and phloem fibers. Additionally, XND1 orthologs were expressed in mesophyll cells of developing leaves. We prepared transgenic Arabidopsis and poplar plants for overexpression of selected NACs. XND1 overexpression in poplar resulted in severe stunting. Additionally, poplar XND1 overexpressors lacked phloem fibers and showed reductions in cell size and number, vessel number, and frequency of rays in the xylem. Overexpression of PopNAC122, an XND1 ortholog, yielded an analogous phenotype in Arabidopsis. Overexpression of PopNAC154 in poplar reduced height growth and increased the relative proportion of bark versus xylem.