This research examined oil from the neem tree (Azadirachta indica A. Juss.) for its potential as an eco-friendly wood preservative. In contrast to expectations from the literature, according to which neem oil should be effective against insects and fungi, neem oil performed poorly as a preservative for Pinus radiata D. Don wood, which suffered significant mass losses in the bioassays. Using standard experimental procedures from the wood preservation industry, concentrations of 0.01, 0.1, 1.0, 2.5 and 5.0 percent neem oil in white spirit were bioassayed against five species of decay fungi. Additionally, concentrations of 0.01, 0.1 and 1.0 percent neem oil were bio assayed against two species of termites. It is concluded that neem oil can only be useful as a wood preservative if new, optimized formulations are sought, probably exploiting synergy with cobiocides.