Abstract:A combined Provenance family progeny trial of Eucalyptus grandis was established in Fujian in 1990 using seeds provided by the Australian Tree Seed Centre with 18 provenances and 147 open-pollinated families representing the whole range. Research results from the trial indicated that there were very significant difference in growth characteristics between families, and significant difference in wood basic density between provenances/families at age 4 years. Provenance 1, 4, 15 and 5 as well as family group A, B, C, D, E and F had higher wood density than the others. There was not a significant correlation between growth characteristics and wood density- It was found that the more significant genetic variation existed in all the characteristics between individuals, and hence individual selection would exceed family selection in genetic gain by 6%- 25%. The more genetic gain can be achieved by individual selection based on se1ection index values.