Abstract: Depend upon the large amount demand for new varieties with high quality, productive, resistant and stability of eucalyptus for developing industrial pulpwood and timber plantation in southern China, some existing problems and issues relating to improvement and breeding of eucalyptus are discussed. It is important that the success of sustainable management of eucalyptus plantation depends on a powerful genetic improvement system for long term breeding, and which is hold on implement population genetic improvement for many generations and enhance the studies on interspecific hybridization within the promising species and developing promising hybrid clones in large scale. Emphasis will be put on the utilization of biotechnology by means of gene engineering for future marker assisted selection using in traditional breeding of eucalyptus. It is also important that increasing efficiency of improvement and breeding should be considered genetic variations among provenances, families, single trees, and even cells and molecules in future.