In Indonesia and Malaysia, Eucalyptus pellita has replaced large areas of Acacia mangium plantations as the latter species is highly susceptible to C. manginecans. This strategy may not be effective in the long term as E. pellita is also susceptible to Ceratocystis wilt and canker disease though it has higher tolerance than A. mangium. Furthermore, the pathogen has the capacity to evolve and adapt to new hosts. To highlight the need for careful sanitation in nurseries and the potential impact of wounding during silvicultural operations, two experiments were conducted to (i) demonstrate the ability of cryptic Ceratocystis infections in nursery plants to develop into Ceratocystis wilt and canker disease after planting out and (ii) assess the risk of Ceratocystis infection and disease development from different wound types. In the nursery, three-month-old mini-cuttings of seven E. pellita clones were artificially wounded and inoculated with two isolates of Ceratocystis manginecans near the base of the stem. The disease incidence and lesion length were measured one month later, just prior to planting out. After four months of growth in the plantation, the trees were harvested and stems sliced longitudinally to measure the length of xylem discolouration. Six of 36 ramets of susceptible clones died and the length of xylem discolouration was significantly greater in susceptible clones than in tolerant clones. The second experiment was based on inoculation of 12-month-old plantation-grown trees of one clone of E. pellita with one isolate of C. manginecans using six different wounding methods. The inoculated wounds on the trees all produced xylem discolouration, except for those that only penetrated the outer bark. Disease incidence was greater at stem heights of 30 to 90 cm than on the basal stem or branch stub. The experiment emphasised the importance of minimising the risk of C. manginecans infection following wounding in the nursery and in the field as the discolouration is an indication of xylem blockage that can lead to tree mortality.