Seedlings o f 12 legume tree species (Acacia caesia, A. catechu, A. farnesiana, A. holosericea, A. leucocephala, A. nilotica, Albizia lebbeck, Dichrostachys cinerea, Leucaena latisiliqua, Prosopis cineraria, Dalbergia latifolia and P terocarpus marsupiumj were raised informaldehyde-fumigatedjFytolandrenched beds in a nursery. Seedlings in the formaldehyde fumigated beds had stunted growth and were chlorotic; had poor VAM root colonization ( 18-25.3Vo ) and spore density (3.1 - 10.6g. soil'1) and lower nodule number ( 3 – 8 plant'1) and nodular biomass (100 - 870 mg plant'1) ; the total biomass (15.5 - 72 g plant'1) and fie ld survival rate (31.2 — 40.4Vo) o f the seedlings were very low. The mycorrhizal species isolated were Acaulospora bireticulata , Glomus fasciculatum and G. geosporum. In contrast, seedlings form Fytolan-drenched beds showed normal growth, enhanced biomass (18 — 83.2 fg plant'1) and higher fie ld survival rate (71 - 86% ) ; intense V AM root colonization (53.4-100% ) and higher spore density (3 6 -8 2 .8 g soil'1) and higher nodule number (7.4 - 17.6 plant'1) and nodular biomass (195 - 950 mg plant' ) compared with the control seedlings. Roots o f these plants exhibited extensively developed arbuscular and vesicular structures. O f the seven VAM F species recorded from the rhizosphere soils o f control and Fytolan-drenched beds, A. bireticulata , G. fasciculatum and G. geosporum were the dominant species. The differences between treatments were statistically significant (P < 0.05