The opinion is so wide-spread that all parts of the Eucalyptus trees should be avoided in gardening practices. I have not found that to be true .. with the proviso that my experience is only with two varieties - Silver Dollar & Lemon Scented.
I hope you will chime in with YOUR EXPERIENCES with eucalyptus. Will your plants grow beneath them? Have you found that composted eucalyptus deters plant growth? Any problems with composting?
I note in a naturalized setting, that sagebrush will grow in the sparse shade of tall eucalyptus groves. In my yard, many flowering plants/shrubs thrive in similar sparse shade and with soil ammended and mulched with material of the two eucalyptus varieties above. In the dense shade under a copse of Silver Dollar eucs, only shade-loving plants thrive. I have found that a VERY thick layer of eucalyptus chips is primo to knock down/deter weeds.
To be clear, posted below is the wikipedia material about allelopathy. You will note that Eucalyptus is listed as having allelopathic characteristics.
A google search on key words "are eucalyptus trees allelopathic?" got many credible hits. All in opposition to my personal experience/observations. Confusing to the max!
Here is a link that might be useful: Wikipedia - Allelopathy
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