Mixed-species plantations of eucalypts and acacias have the potential to improve stand productivity over that of respective monocultures through the facilitative effect of nitrogen-fixation by acacias, and increased resource capture through above- and belowground stratification. However, growth in mixed-species plantations may not be improved compared to that of monocultures when competitive interactions outweigh the effects of improved nutrient availability and resource capture. Careful selection of sites and species is therefore critical to successfully improving stand productivity using mixed-species plantations. This study set out to examine some of the processes and interactions that occur in mixed-species plantations, and the effect nutrient and water availability can have on the growth of mixtures. In three out of four mixed-species field trials examined in this study, growth was not increased in mixtures compared to monocultures. However, in the fourth field trial, heights, diameters, stand volume and aboveground biomass were higher in mixtures of E. globulus and A. mearnsii from 3-4 years after planting. The range in outcomes from mixing species in these four trials shows that a fundamental understanding of the underlying processes is required to enable a greater predictive capacity for the circumstances under which mixtures will be successful. Therefore the growth dynamics, processes and interactions were examined in the mixtures of E. globulus and A. mearnsii. The difference in productivity between mixtures and monocultures in this trial increased with time up to age 11 years, when 1:1 mixtures contained twice the aboveground biomass of E. globulus monocultures. The positive growth response of trees in mixture compared to monocultures was the result of accelerated rates of nutrient cycling, a shift in C allocation and reductions in light competition through canopy stratification. Nitrogen contents of foliage and soil clearly showed that A. mearnsii influenced the N dynamics in this trial. If these changes in N contents were due to N fixation by A. mearnsii, then about 51 and 86 kg N ha-1 yr-1 was fixed in the 1:1 mixtures and A. mearnsii monocultures, respectively. Nitrogen fixation was also examined using the natural abundance method. The delta15N values of foliage collected at 10 years were grouped according to the mycorrhizal status of the host plant. Therefore the discrimination of 15N during transfer from mycorrhizae to the host plant appeared to vary with mycorrhizal status, and the natural abundance of 15N was not used to quantify N fixation. Rates of N and P cycling in litterfall were significantly higher in stands containing at least 25% A. mearnsii (more than 31 kg N ha-1 yr-1 and more than 0.68 kg P ha-1 yr-1) compared to E. globulus monocultures (24 kg N ha-1 yr-1 and 0.45 kg P ha-1 yr-1). Rates of litter decomposition and N and P release were about twice as high in 1:1 mixtures compared to E. globulus monocultures and were even higher in A. mearnsii monocultures. It is therefore important to select N-fixing species that are capable of cycling nutrients quickly between the plant and soil, and that have readily decomposable litter. The total belowground C allocation was not significantly different between mixtures and monocultures (14 to 16 Mg C ha-1 yr-1). However, since aboveground net primary production was greater in 1:1 mixtures, the changes in nutrient availability appears to have increased total productivity (both above- and belowground), and reduced the proportion of C allocated belowground in mixtures compared to E. globulus monocultures. In a pot trial containing mixtures of E. globulus and A. mearnsii both species grew larger in mixture than in monoculture at low N levels, and mixtures were more productive than monocultures. However, at high N levels, E. globulus suppressed A. mearnsii and mixtures were less productive than E. globulus monocultures. Similar effects were found for high and low levels of P. Therefore resource availability can have a strong influence on the interactions and growth of mixtures. The productivity of mixtures may only be increased on sites where the resource for which competition is reduced in mixture is a major limiting growth resource. For example, if N is not a limiting growth factor then an increase in N availability from N-fixation may not increase growth, and the N-fixing species may compete for other resources such as soil P, moisture or light. This study has shown that mixtures containing a N-fixing trees and a non-N-fixing trees can be more productive than monocultures, but that this increase in productivity will only occur on certain sites. Examination of the growth, interactions and processes that occurred in mixtures in this study provide useful information that can aid the selection of species combinations and sites.