A field observation that roots of sandal wood tree (Santalum album (L.)) formed direct haustorial connections with root nodules of nodulating legumes was confirmed by pot culture studies on interaction between sandal wood plants and pigeonpea (Cajanus cajan (L.) Millsp.) or Pongamia glabra Vent. plants. The number of nodules and nitrogen content of plants decreased in parasitized nodulating species with corresponding increase in the nitrogen content of sandal plants. The root region of sandal had more of nitrogen-fixing bacteria and VAM fungi than those of pigeonpea.