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Of the four species of Santalum that occur naturally in Western Australia (S. spicatum, S. lanceolatum, S. murrayanum and S. acuminatum), only S. spicatum, and to a much less extent S. lanceolatum, is commercially harvested for sandalwood. Western Australia has maintained an almost entirely export-oriented sandalwood industry for more than 150 years. S. spicatum is mostly used for the manufacture of joss sticks in Southeast Asia, although new uses have recently been developed. S. spicatum, which occurs naturally in the wheatbelt and rangeland regions of Western Australia, is the focus of a research program aimed at understanding its natural regeneration requirements and its establishment in tree farms on agricultural land. S. album (Indian, or East Indian sandal) has a higher santalol oil content, faster growth rate, and larger tree habit than other Santalum species. It is the centre of a research program aimed at the development of an irrigated sandal tree-farm resource in northern Western Australia. As with most Santalum species, S. album silviculture is complex due to its parasitic requirements. A reliable nursery and silvicultural system has been developed and is routinely used. A tree-farm resource of both S. spicatum and S. album will supplement the green-wood harvest of S. spicatum from natural stands in the arid rangelands. The need for a coordinated approach to marketing the world's remaining supplies of sandalwood is discussed. It is important that the maximum value of this important resource is realised, and that the future global sandalwood industry is sustained.