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Natural recruitment of sandalwood (Santalum spicatum) is generally low in pastoral regions of the Midwest and Goldfields, Western Australia. Harvesting of S, spicatum for the aromatic timber occurs in these regions, creating a need to develop management strategies to conserve the species. This paper examines sandalwood recruitment over three years within a natural stand of 32 ha, near Paynes Find, Western Australia. Santalum spzcatum recruitment success was compared between three establishment treatments, and between two fencing treatments (+I-). At age three years, mean survival of S. spicatum seedlings planted next to host trees (25%) was significantly higher than those planted at harvesting spots (2%) and beneath parent trees (0%). In the unfenced treatment, there was evidence of grazing and S, spicatum survival and growth were significantly lower than in the fenced treatment. However, fencing alone did not improve S. spicatum recruitment because natural seed dispersal was poor and survival beneath parent trees was low. De-stocking, combined with seed enriching host trees is recommended to dramatically improve S, spicatum recruitment in the Paynes Find region. Santalum spicatum seedling performance was compared growing next to three N2-fixing species (Acacia burkittii, A. tetragonophylla and A. ramulosa) and one non N2-fixing species (Hakea recurva). At age three years, S. spicatum survival was significantly higher next to A. burkittii (33%) than A. tetragonophylla (1 7%). Santalum spicatum survival next to A. ramulosa and H. recurva was 24-26%. Fencing improved S. spicatum survival next to A. burkittii, and to a lesser extent next to A. tetragonophylla and A. ramulosa. In contrast, survival of S, spicatum seedlings next to H. recurva was unaffected by fencing. Santalum spicatum growth next to each host species was slow and significantly higher in the fencing treatment. Foliar concentrations of N, P, K and Ca were the same across 5'. spicatum treatments, but the concentration of Mg varied. The foliar K:Ca ratio was also similar between S. spicatum treatments, ranging from 1.4 to 2.0. Key words: Santalum spicatum, recruitment, seed enrichment, host species, foliar nutrients