The paper examines the pattern, scope and potential of commercial utilisation of rubberwood in India in the context of the country's current position as a net importer of wood. The consumption pattern of rubber stemwood in India presents a complex picture compared to the trends in Malaysia and Thailand. The scope for more value addition in India is evident from the insignificant share of rubberwood processing industry in the total consumption. From a policy angle, two important problems deserving immediate attention are lower levels of capacity utilisation in the industry and vast untapped potential of sawn timber. Two major developemts in the domestic market having long term implications on the prospects of the industry in the manufacture of construction components are: a) the inclusion of rubberwood by the BIS for doors, window shutters and frames, and b) the ban on forest wood being used in the construction work by the CPWD since April 1993. The paper underscores a genuine need for a promotional agency with regulatory powers supported with sustained R&D efforts for improving recovery rates (in sawing and seasoning) and economic utilisation of the process waste to maximise the returns from this renewable resource.