This study on the allelopathic effects and chemical components of the essential oi l from Eucalyptus grandis × E. urophylla shows that the leaf oil emulsion of E. grandis × E. urophylla can inhibit the proliferation of pathogenic fungi Fusarium oxysporum, Pyriculerie grisea, Glorosprium musa rum and Phytophthora capsici. Pupation and feeding of the pest insects Spodopteralitura Fabricius and Helicoverpa armigera Hubner are shown to be affected with restraining effects which increase with the increasing levels of oil concentration. A GC/MS analysis of the leaf oil indicated that the main components, with a relative content of ≥3%, were alloocimene (43.22%), α-pinene (13.63%), γ-terpinene (5.49%), (E)-3,7-dimethyl-2,6-octadien-1-ol (3.58%), β-fenchyl alcohol (4.58%), and 2-amino-3,5-dicyano-6-(4-methoxyphenoxy)-pyridine (3.67%). Terpenes played an important role in the inhibitory effects of E. grandis × E. urophylla essential oil on pathogenic fungi and pest insects. Poor biodiversity of eucalyptus plantations is a function of allelopathy.