Let k be a field of characteristic zero and let B be a graded k-algebra. We obtain information on a given derivation D : B → B by studying the behavior of the associated homogeneous derivation gr D.As an application, we give a complete classification of locally nilpotent derivations D :We study locally nilpotent derivations of polynomial rings over k, where k is a field of characteristic zero. Our special interest is in so called "nice" derivations over a polynomial ring k[X 1 , . . . , X n ], which satisfies D 2 X i = 0 for all i. The main result of the paper is the following.Y, Z] and let 0 = D : B → B be a locally nilpotent derivation. If D is irreducible and D 2 X = 0 = D 2 Y , then one of the following holds: 1. There exists a coordinate system (L 1 , L 2 , Z) of B, where L 1 and L 2 are linear forms in X, Y , such that D(L 1 ) = 0, D(L 2 ) ∈ k[L 1 ] and D(Z) ∈ k[L 1 , L 2 ] = k[X, Y ]. *