Variegation is the presence of discrete markings of different colours on plant parts and is of economic and scientific importance in ornamental crops. But variegation is rarely reported in perennial trees, especially in palms. This study reports the presence of variegation in areca palm, Areca catechu Linnaeus, an economically important plantation crop. The variegation traits were identified in the areca palms of Mangala and South Kanara Local (S.K. Local) varieties grown in Southern Karnataka, India. The variegated and non-variegated regions of the variegated leaves as well as the normal leaves were analysed for physiological parameters and the nuts of variegated and normal palms were studied for important biochemical constituents. The variegated and normal palms exhibited significant difference both physiologically and biochemically. The yellow regions of the variegated leaves lamina exhibited low photosynthetic rate, stomatal conductance, transpiration rate and chlorophyll index when compared to green region of variegated leaves as well as the normal leaves in both Mangala and S.K. Local varieties. The photosynthetic rate, stomatal conductance, transpiration rate and chlorophyll index of Mangala and S.K. Local varieties recorded in yellow regions of the variegated leaves were 1.1966 µ mole m-2s-1 and 1.7332 µ mole m-2s-1, 0.1028 mole m-2s-1 and 0.0683 mole m-2s-1, 2.3482 m mole m-2s-1 and 1.9983 m mole m-2s-1 and 16.7667 and 22.8333, respectively. The photosynthetic rate, stomatal conductance, transpiration rate and chlorophyll index of Mangala and S.K. Local varieties recorded in non-variegated leaves were 3.4348 µ mole m-2s-1 and 3.8569 µ mole m-2s-1, 0.2228 mole m-2s-1 and 0.1050 mole m-2s-1, 3.8307 m mole m-2s-1 and 2.9371 m mole m-2s-1, 67.00 and 66.20, respectively. However, stomatal resistance was observed to be low in green regions of variegated (1.4067 s cm-1 and 5.0333 s cm-1) and non-variegated leaves (1.7833 s cm-1 and 1.7833 s cm-1) in both the varieties when compared to yellow regions (8.3667 s cm-1 and 10.8667 s cm-1). Biochemical constituents like total sugar, total phenolics, non-tannin phenolics and antioxidant potential in terms of reducing power using CUPRAC and FRAP methods indicated wide variation between variegated and non-variegated nuts. Variegated plants are often valued for their aesthetic appeal. By understanding the physiological and biochemical basis of variegation in Areca catechu L., breeding programs could be devised to develop strategies to manipulate variegation so as to exploit the trait in an aesthetic point of view as well as to facilitate conservation efforts and formulate horticultural practices for cultivating these variegated palms. Further studies are warranted for better understanding of the mechanism, as well as the factors responsible for the variegation trait in Areca catechu L.