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This paper examines the ecological threat of tobacco farming in Urambo District, the leading producer of flue‐cured tobacco in Tanzania with other major producers being Tabora, Iringa and Chunya Districts. Structured interviews were conducted in four villages while 39 Modified‐Whittacker plots were laid in tobacco fallow lands for inventory of woody species to ascertain ecological performance and the impact of tobacco on species diversity, richness and standing stock functions. There was higher than expected species richness with a total of 115 tree and shrub species identified. Tobacco farming showed no significant negative effect on the floristic composition and stem density. However, the significantly reduced biomass and change in vegetation structure illustrate the potential loss in ecological function of the woodlands. Land clearing for tobacco planting account to an annual deforestation of 3.5% while on …