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Pasture productivity and wool production on the Warrego Mitchell grass (Astrebla spp.) rangeland in south-westem Queensland were studied over a period of 13 years under continuous or rotational grazing, each at three stocking rates. The stocking rates were one sheep to three, two or one hectares and the rotational grazing was a six- monthly system of summer or winter grazing. The grazing treatments were applied over two five- year terms with a nil-grazing period at the conclusion of each. The latter periods provided a means of measuring the cumulative effects of the grazing treatments. Drought conditions prevailed during the first term so that supplementary feeding was necessary, but the second experienced above average rainfall. Quarterly measurements were made of the pasture dry matter on offer and its botanical and chemical composition. Monthly sheep liveweights, annual wool production and sheep size development in each term were also measured and monetary returns from wool calculated. Rainfall had a major influence on the results recorded and tended to nullify the effects of grazing treatments. Its unpredictability precludes the reliable use of complex techniques in management planning. The overall results suggested that the optimum grazing management of this Mitchell grass rangeland would be continuous grazing at a stocking rate of one sheep to two hectares. Supplementary feeding during drought would be obligatory and should be budgeted for in long-term planning. There was a 50% higher monetary return from this grazing treatment than from the lighter stocking rate and pasture stability (maintenance of Astrebla spp.) was sustained. Pasture stability was adversely affected by the heavier stocking rate. There was no srlstained advantage from rotational grazing compared with continuous grazing.