A field experiment was conducted to study the effectiveness of three doses of Diuron viz, 1.0, 2.0 and 2.4 kg perr ha for controlling weed growth in rubber seedling nursery. Application of diuron at the rate of 2.5 kg per ha at planting, could control weeds effectively for a period of 120 days and was significantly superior to the lower doses tried. Single application of diuron at the rate of 2.5 kg per ha gave a cost saving of 29.9 per cent over the manually weeded plots. Application of Diuron at the rate of (2.5 kg per ha) at planting followed by a second application at the rate of 1.0 kg per ha after two months controlled weeds effectively and resulted in a total weeding cost saving of 55.8 per cent over manual weeding. Herbicide application followed by mulching was also equally effective and economical in controlling weed growth. No phytotoxic effect was noticed on the seedlings from application of the herbicide.