An outbreak of pink disease caused by Corticium salmonicolor Berk. & Br. in Eucalyptus grandis plantations in Kerala State is reported. The sporadic infection recorded during 1979 spread to an epidemic proportion within four years, affecting more than 50% of trees in the two plantations surveyed. Probable factors responsible for this outbreak of pink disease are discussed. {\textcopyright} 1984 Taylor and Francis Ltd.