Eucalyptus hybrid has been planted rigorously in wet tropical regions including Malaysia. Recently, there was a report on the occurrence of stem canker on these trees. However, the extent of the infections by this stem canker is unknown. The aim of this study was to evaluate the influence of stem canker disease, Chrysoporthe deuterocubensis, on the physical and mechanical properties of 11-year-old E. urophylla × E. grandis or also known as E. urograndis. The samples were taken from infected and healthy trees that were segregated into different classes based on the severity of the attack, i.e., healthy (class 1), moderately infected (class 2), severely infected (class 3) and very severely infected (class 4). A total of 1440 samples from four infection classes were used in this study. The physical and mechanical properties were determined according to the standard test procedures specified by the International Organization for Standardization (ISO) 13061:2014 (Parts 1 to 4, 13, 14 and 17) and British Standard (BS 373: 1957). From the result, a significant effect by the infection classes was observed on physical and mechanical properties of E. urograndis. All infected wood experienced less shrinkage compared to that of a healthy one, particularly the volumetric (Volsh) and radial shrinkage (Rsh). Wood from class 2 and class 3 was less affected by the infection while the majority of wood from class 4 had significantly lower density and poorer strength. Based on the strength data, wood from infection class 2 can be considered to be used for non-structural applications such as furniture, interior finishing, window frames and doors since reduction in mechanical properties was observed. Wood from class 3 would need further investigation to examine its suitability for structural applications.