We report on a study of harvest residue management impacts on productivity and soil properties of Eucalyptus pellita plantation in South Sumatra. We assessed the effect of harvest residue retention and P fertilisation on stand growth, biomass and nutrient cycling of the first rotation of E. pellita after 3 previous rotations of Acacia mangium. Changes in soil properties over the E. pellita rotation were also evaluated. Retention of harvest residues combined with the application of P fertiliser yielded stem volume of 209.4 m3 ha−1 and total biomass of 132 Mg ha−1, increased stem volume by 19% and total biomass by 22% compared with complete removal of harvest residue and no P fertiliser in the end of rotation at age 6 years. Mean annual litterfall production was 8.7 Mg ha−1 y-1, and nutrient retranslocation at leaf senescence was high (N, 25–33%; P, 55–73%; K, 40–49%). In the surface soil (0–10 cm) soil organic carbon and N did not change much, while extractable P and available cations decreased over the course of the rotation. Harvest residue retention of the previous rotation of A. mangium and addition of P fertiliser resulted in earlier canopy closure, higher litterfall production in the first two years, lower nutrient retranslocation and higher nutrient return to the soil when the stand is harvested, leading to better nutrient conservation in the soil.