The Sagarnath Forestry Development Project (first phase 1979-85, second phase 1986-90) is the largest mechanized plantation initiative in Nepal. Of the 11000 ha planted, around 55% is Eucalyptus ( E. camaldulensis ) and 40% Dalbergia sissoo ; Tectona grandis was also planted in the project. Planting was on clear felled natural forest land, after ploughing. The most common spacing was 4 x 2 m (1250 container grown seedlings/ha). Diameter and height growth were studied at 20 sites, 8 planted with D. sissoo and 12 planted with Eucalyptus . Most of the plantations were intercropped for periods varying from 1 to 5 years. In years 1-2 the most important summer crop was maize [ Zea mays ], and tobacco [ Nicotiana tabacum ] and mustard [ Brassica juncea ] were grown as winter crops. The age of D. sissoo plantations at the time of measurement ranged from 3 to 25 years while those of Eucalyptus was from 3 to 13 years. Regression equations for age/diameter and diameter/height were established for both the species under intercropped and non- intercropped conditions. It was observed that intercropping gave an initially good start to the plants, but that in the long run, the growth was determined by the site potential and the impact of intercropping was nullified. Up to the age of 3 years the diameter growth of both Eucalyptus and D. sissoo was equal, while between 3 to 11 years Eucalyptus had better growth than D. sissoo . However, thereafter D. sissoo had better diameter growth. For overbark volume production in Eucalyptus the average scenario from the 8- 13-year-old data for Eucalyptus gave an annual productivity of 15.86 m³/ha while the best scenario (9- year-old data) gave a figure of 31.01 m³/ha and the worst scenario (13-year-old data) gave a figure of 6.44 m³/ha. In the case of D. sissoo the average annual overbark volume production at 15 years old was 11.17 m³/ha, and at 25 years old it was 15.35 m³/ha. Soil analytical data (chemical and textural properties) are also given for the plantations.