Eucalyptus is one of three species (Eucalyptus, poplar, pine) of fast-growing trees in China. Because Eucalyptus grows rapidly, afforestation of a Eucalyptus forest can be achieved in a short period of time making the species a very popular plantation species. China highly praises the use of eucalyptus, especially in Guangxi, Guangdong, Hainan, Fujian and other tropical and subtropical regions. Eucalyptus plantings have a long history and feature several favorable characteristics such as being well adapted to optimum growing conditions in the provinces that led to its popularity. Guangxi is a major area of eucalyptus plantations. The eucalyptus industry has become the one of the dominant and specialized industries of the province, and serves as a source of livelihood for rural people living in Guangxi. The promotion of the industrial development of eucalyptus plantations in Guangxi in this new century not only plays an important role in the overall economic and social development of the province, but also has great significance in the promotion of the sustainable development of the national timber industry and it supports the entire scale of economic and social development. The author reviewed the history of Eucalyptus plantations in Guangxi, which began in the early 19^th century from France. In the early 19^th century, the area of Eucalyptus plantations was small and developed slowly. After the founding of the People's Republic of China, development of Eucalyptus plantations went through three stages: an initial stage (1949-1977), a promotional phase (1978-2000) and a large-scale development phase (2001-present). Currently, Eucalyptus plantations in Guangxi are widely distributed, cover a large area, exhibit high yield, are effective in providing timber and afforestation, and make great contributions to local economies; these give Eucalyptus a prominent position in forestry of the region. Eucalyptus plantations and forests in Guangxi are distributed in almost all regions with hills and mountains, or near villages and streets. In 2012, the area of Eucalyptus plantations reached 1.87 million hm². Currently, Guangxi eucalyptus timber production accounts for over 70% of the region's total timber production. Eucalyptus plantations in Guangxi have sound economic, ecological, and social characteristics. The annual forest growth, annual harvest volume, and the net increase of forest volume in Guangxi all rank first in the country for Eucalyptus. Eucalyptus is the largest production base of wood in China and provides a strategic core wood supply for the national reserve base. In certain respects, Eucalyptus plantings have many positive ecological effects, such as carbon sequestration and oxygen release providing for e.g. a cleaner environment, forest protection, and climate regulation. The ecological benefits of planting Eucalyptus are significant. In other respects, the massive planting of Eucalyptus in Guangxi inevitably brings negative impacts on the environment. Large-scale cultivation of Eucalyptus plantations in Guangxi cause several problems that need to be studied if solutions are to be found, including problems related to water and fertilizer consumption, toxic effects to livestock, as well as desertification, land degradation and disasters related to Eucalyptus plantations. Eucalyptus plantations have created an important industry that is characteristic of Guangxi, and currently provide a source of livelihood for local people. China needs to vigorously develop this industry to provide a source of livelihood for local people by implementing a western-style developmental strategy, and by promoting comprehensive, coordinated and sustainable economic and social development in Guangxi and other western provinces and autonomous regions. In this sense, the prospects for the development of the Eucalyptus industry are very broad. To enable rapid development of the Eucalyptus industry in the new century, we should follow three principles, the principles of enabling sustainable development, adapting to local conditions and developing the process gradually. We need to employ the following six specific measures: scientific planning, rational distribution on the landscape, optimization of the structure of plantations, using reasonable planning methods for the industry, improving conditions for local people, and including the development of technology.