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A survey was conducted at Oruchinga refugee settlement in Mbarara district, Uganda in November 2003 to ditermine the cause, incidence and severity of a gall damage on Eucalyptus species in nursery and woodlots. Leptocybe invasa (Hymenoptera: Eulophidae), a tiny black wasp commonly known as blue gum chalcid, was found to be the cause of the gall damage on Eucalyptus. The wasp attacked field planted seedlings and saplings, but not seedlings in the nursery. The incidence and severity of the wasp attacks were markedly higher on Eucalyptus grandis than E. saligna. Research is Urgently needed to develop Integrated Pest Management (IPM) strategies against the new Eucalyptus pest.