The first generation genetic gains in four secondgeneration seedling seed orchards of Eucalyptus pellita established at two locations in Indonesia (Kalimantan and Sumatra) were examined by analyzing data on the height, diameter and stem form of the trees during years 1 to 3. The seed orchards each consisted of 60 open-pollinated families: 48-49 families from first-generation plus trees (improved population) and 11-12 families from natural forest (unimproved population). The realized gains for height and diameter were ca. 16 and 19%, respectively. These gains were highly significant and consistent, irrespective of age and location. However, the gains in stem form were much lower (4%) in Kalimantan than in Sumatra (21%) and only significant in the latter, possibly because of the more intensive silvicultural management regimes at the Sumatran sites. The results confirmed that the first-generation tree improvement program for E. pellita has been effective in Indonesia, and that it should provide improved seeds for operational plantation, thus raising their productivity.