The present study was an attempt to make economic comparison between indigenous and clonal variety of eucalyptus. The study was conducted in the Hoshiarpur and Muktsar districts of Punjab state. The data pertained to the year 2015-16 and were collected from 70 farmers which were growing eucalyptus on their farm land as block plantation. The number of farmers growing indigenous and clonal variety were 32 and 38 respectively. There was not much difference found in establishment cost of both varieties irrespective of sapling cost. It was found that sapling cost was more in case of clonal eucalyptus. The total difference of Rs 2931 was observed in the establishment cost of both the varieties. In operational cost, the expenditures were almost same irrespective of cost of fertilizer and manure as clonal variety needs more irrigation and fertilizer and manure. Both the varieties have too much difference in terms of returns as clonal eucalyptus was highly profitable than indigenous eucalyptus. The net returns of indigenous eucalyptus were Rs 192329 in seventh year whereas Rs 355289 in case of clonal eucalyptus giving extra benefit of Rs 162960. The annuity value also increased with the increase in age of indigenous and clonal eucalyptus. It was clearly observed that clonal variety was more profitable than indigenous variety of eucalyptus.