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It is, often found in harsh environments that trees can be beneficial to understorey species but little is known about this positive relationship. This study examined; whether zones of vegetation composition were associated with Geijera parviflora; and the importance of shading in facilitating understorey growth. Species abundance was measured under five randomly selected mature G. parviflora trees in south-western New South Wales, Australia. Artificial shade plots were constructed in a canopy free area to compliment the findings. The microhabitat created by the canopy of G. parviflora generates spatial heterogeneity over the broader plant community. It improves the establishment and survival of many understorey species and increases species diversity. Shading appears to be a key influence on the plant communities under the canopy. This emphasizes the importance of arid zone trees in conserving both over and understorey plant diversity.