The aim of this research project has been to identify and propagate novel naturally occurring hardwood varieties with decorative wood. As well, we have worked towards improving the propagation of two known hardwood species, curly birch and hybrid aspen, for future application in the plantation forestry industry. We have also embarked on generating breeding populations from silver birch and hybrid poplar to generate novel figured wood varieties in these species. In this report we outline the progress so far. Results of particular interest are (1) 2.5 year-old curly birch trees have developed visible stem swellings typical of parental curly birch plants. This finding suggests that nurseries will be able to use these swellings as a sales argument without prolongation of normal growth period before sale. (2) The generation of a breeding population of hybrid poplar is well under way, as approximately 4000 hybrid poplar shoots have been generated. Rooting and transfer to greenhouse is in process.