Eucalyptus were introduced 50-60 years ago in Kathmandu as avenue plantation. Eucalyptus was introduced into the different parts of Nepal on a trial basis only. Apart from some small scale plantations, it did not gain popularity due to the requirement of skilled nursery techniques, intensive management and above all very thorough weeding. [[Sagarnath Forest Development Project]] is the only large scale eucalypt plantation in Nepal.
E. camaldulensis has been found as the most suitable species for the full range of soil types; the provenance “Petford” being the most preferred one.
The main use of eucalypts in Nepal is likely to be for high volume fuelwood production and for transmission poles. Eucalypt oil is also being extracted from the leaves; the Sagarnath distillation plant has a daily production capacity of 100 litres. The leaves have been found to have 10% oil content by weight.
Untreated round poles have been used as internal construction material in wooden houses. Sawn timber from this fast growing eucalypt is not generally used, because of the warping and splitting at time of sawing.