We selected 28 populations of Leucaena leucocephala from different geographical locations in the states of Andhra Pradesh, Tamil Nadu and Orissa of India on the basis of height and girth at breast height (GBH). We evaluated fiber length, optical density, wall thickness, vessel element length, vessel element diameter, specific gravity and lignin of these populations of L. leucocephala in different sites. Populations had significant variations for all growth, wood and paper parameters. Girth at breast height (GBH) and specific gravity were the most important parameters for heritability and genetic gain, respectively. The minimum heritability was reported for vessel element length and genetic gain for fiber length. The populations were grouped into six clusters, cluster II had maximum number of populations (14) and clusters IV and VI had one population each. GBH contributed maximum of 34.39 % towards total divergence followed by specific gravity (14.02%). An economic technique to produce quality seed by establishing seed orchards with genetically divergent parents was suggested. The hybridization among the populations selected from diverse clusters could produce greater heterosis needed for higher growth and suitable wood and paper manufacturing parameters. We selected 28 populations of Leucaena leucocephala from different geographical locations in the states of Andhra Pradesh, Tamil Nadu and Orissa of India on the basis of height and girth at breast height (GBH). We evaluated fiber length, optical density, wall thickness, vessel element length, vessel element diameter, specific gravity and lignin of these populations of L. leucocephala in different sites. Populations had significant variations for all growth, wood and paper parameters. Girth at breast height (GBH) and specific gravity were the most important parameters for heritability and genetic gain, respectively. The minimum heritability was reported for vessel element length and genetic gain for fiber length. The populations were grouped into six clusters, cluster II had maximum number of populations (14) and clusters IV and VI had one population each. GBH contributed maximum of 34.39% towards total divergence followed by specific gravity (14.02%). An economic technique to produce quality seed by established seed orchards with genetically divergent parents was suggested. The hybridization among the populations selected from diverse clusters could produce greater heterosis needed for higher growth and suitable wood and paper manufacturing parameters.