Many species of Eucalyptus, one of the dominant genera in Australian forests and woodlands, contain high levels of tannins and other phenols and are also heavily damaged by grazing insects. These phenols do not appear to affect insect attack because a wide range of concentrations of condensed tannins and other phenols in leaves of 13 Eucalyptus sp. influenced neither feeding rates of Paropsis atomaria larvae, nor their nitrogen use efficiencies. We discuss reasons why tannins may not appreciably reduce the availability of nitrogen (N) to these insects. Performance was directly related to leaf N concentration, and growth rates, N gains, and N use efficiencies all increased as leaf N content increased, although absolute feeding rates remained constant. These relationships differ from those found in insects feeding on other plants, and we suggest that the low N contents common in Eucalyptus leaves may be responsble. We propose that the extensive damage observed in many eucalypts is in part related to the high feeding rates maintained by individual larvae.