Arbuscular mycorrhizal inoculation and com- posted residue application are being assayed to aid res- toration of desertified areas under Mediterranean cli- mate. The particular objective of the present study was to assess the short-term (8 months) effects on the initial stages of plant performance and on mycorrhizal propa- gule release, key factors to decide further developments in the restoration process. Mycorrhizal inoculation, with Glomus intraradices, was practised during nursery pro- duction of representative shrub species from Mediterra- nean ecosystems and composted residues were added to soil before transplanting to a desertified area in southern Spain. Pistacia lentiscus, Rhamnus lycioides, Olea euro- paea subsp. sylvestris and Retama sphaerocarpa, key species from the natural succession in the target area, were the test plants. Mycorrhizal inoculation, and in some cases compost addition, improved the ability for nutrient acquisition by plants upon transplanting in the field. The number of "infective" mycorrhizal propagules was higher in soil around mycorrhiza-inoculated shrubs than that around the corresponding non-inoculated con- trols. The organic amendment significantly increased propagule production in the rhizosphere of mycorrhiza- inoculated plants. The number of mycorrhizal spores was relatively low in soil around transplants, being hardly affected by treatments. Only three distinguish- able glomalean spore morphotypes were found, belong- ing to the species Glomus geosporum, G. contrictum and Scutellospora calospora, with very few unidentified spores, corroborating the low diversity in degraded eco- systems. An increased development of the extramatrical AM mycelium was found in soil around the roots of the four mycorrhiza-inoculated test plants, probably the main source of AM fungal propagules in the ecosystem at this stage of plant development. In conclusion, the tailored AM inoculation assayed was functioning under field conditions to enhance nutrient acquisition by the target indigenous shrubs and, in interaction with organic amendments, promoted mycorrhizal propagule produc- tion in soil, critical factors to benefit further stages of the revegetation process.