Teak (Tectona grandis Linn, f.) has occupied a dominant position in the plantation programme ofthe Forest Department in Bangladesh. It is important to know the social rate of return from Teak plantation in order to evaluate the economic suitability of plantation programme and compare Teak with other promising species.

The paper contains discussions on regression of size variation of Teak logs on price changes. Government revenue is calculated assuming that the lot purchasers and the consumers have similar size preferences. Internal rate of return from Teak plantations belonging to site index 15, 20, 25, 30 and 40 is estimated.