The genus
Eucalyptus
is currently an important source of timber, cellulose pulp, and energy in a world that is becoming increasingly more conscious of the need to use renewable resources. This chapter initially explains the importance of hybridization and cloning techniques in intensive breeding programs that occurred in Brazil during the last few decades. The strength of these programs is based on the selection of the genetic material and the evaluation of the factors that can influence the expected genetic gains in forestry breeding programs using seeds. Factors such as endogamy, floral development, pollen viability, and pollination are discussed together with seed vigor and the influence of environmental factors on correct evaluation of candidate material. The recent application of molecular markers in eucalypt breeding programs is also mentioned with particular emphasis on genetic diversity, genotyping, and their association with disease resistance. An introduction into Eucalyptus tissue culture is also given as a prelude to the current status of genetic transformation using biolistics and
Agrobacterium tumefaciens
in this genus. The final sections describe the current challenges, disease resistance, and wood quality for large‐scale cultivation and utilization of eucalyptus wood as prime material.