This paper explores successes and opportunities of the Centre for Native Floriculture's (CNF) first 3 years of operation (Stage 1; CNF1) and plans for CNF2 (2006-09). In addition, some of the challenges for native floriculture, past and future, are evaluated. CNF Stage 1 was established in May 2003 with the aim of developing novel Australian native species for global floriculture markets. CNF1 was built on a foundation of conservation biology to foster cultivation over bush-harvesting. It had three programs: marketing and value chain management, floriculture breeding and biotechnology, and capacity building. Value chain program staff conducted domestic and international market research to aid flower growers to understand the markets to which their product was consigned. A second objective was to assist the floriculture program ensure that its selection and breeding activities were market-led based on an understanding of consumer perceptions. Formation of a 'model' value chain based on a new product, Backhousia myrtifolia, was facilitated by the value chain program and yielded substantial insight into both industry dynamics and the challenges of exporting a novel cut filler flower product. The floriculture program supports, in addition to a small team of research staff, postgraduate students and visiting fellows who contribute significantly to CNF research output. Floriculture program projects cover: molecular taxonomy, propagation, flowering physiology, phosphorus nutrition, management and control of soil-borne pathogens, postharvest physiology and technology, and plant water relations. Australia is presently experiencing the worst drought in living memory. Thus, the selection of ornamental native plants that are water use efficient has become a priority. In the floriculture program, seeds of 70 prospective novel ornamental species were collected, processed and stored. Two breeding activities have been established, the major one being on Ptilotus. This is an endemic, diverse and highly ornamental genus of about 100 species. Several selections and breeding lines are currently being evaluated by Australian and overseas industry collaborators. The first commercial releases from the Ptilotus selection and breeding activity are expected in mid 2007. Industry capacity building and regional development were a priority for the capacity building progam. In CNF2, the industry development program will continue short course development and initiate delivery into regional areas. In addition, a series of native floriculture self paced CD-ROM learning packages will be developed for use by industry members. Based on the experience of CNF1, new challenges and opportunities will be addressed and sought, respectively, by the floriculture program and the industry development program that comprise CNF2.