Abstract: New research advances in ecological degradation and restoration of Eucalyptus plantation were analyzed from the point of view of eco-environmental effect of Eucalyptus plantation in recent past. Three cognitive conclusions were arrived at: Ecological degradation of Eucalyptus plantation usually leads to soil degradation, decrease in biodiversity and forestland productivity. These are mainly driven by soil and water loss in forestlands, unreasonable human activity and allelopathic effect of Eucalyptus species. Scientific strategy and technology such as soil and water conservation, biodiversity protection and forestland productivity regulation must be implemented in ecological restoration of Eucalyptus plantation. Multi-disciplinary research on ecological adaptability and eco-environmental effect of Eucalyptus species at molecular and cellular levels could be a promising direction of future studies on ecological degradation and Eucalyptus plantation restoration. Moreover, exploring ecological relationship between Eucalyptus species and other exotic plant species is key to successful future studies.