Abstract The volume in merchantable trees (4 inches d.b.h. and larger) was about the same at spacings of 4 x 8, 8 x 8, 12 x 8, and 16 x 8 feet for Eucalyptus grandis trees at plantation age 7.4 years in Glades County, Florida. Total volume in all stems, however, was 1.7 times greater at the closest spacing than at the two widest spacings. Thus, in a conventional pulpwood system, merchantable yields equal to those from closer spacings could be obtained from the wider spacings at lower cost for establishment and harvest. However, if merchantability limits could be circumvented by field chipping small trees, volume yields 16 to 68 percent greater could be achieved by planting at close spacings. Neither wood quality nor tree height was appreciably affected by stand density over the range of spacings tested. If the harvesting system is unknown at planting time, a spacing of about 6 x 12 feet is probably best.