Abstract: The use of in vitro culture technique has growing significance in conservation of plant germplasm and in securing valuable products of medicinal and commercial importance. Aquilaria malaccensis Lam., an economically important tree species of North East India is valued for its highly prized wood and agar oil. Callus induction was investigated using young leaf and nodal explants of this species on modified Murashige and Skoog (MS) and Woody Plant Medium (WPM) supplemented with different growth hormones. We found MS medium more suitable for induction and maintenance of callus when supplemented with growth hormones at high auxin and low cytokinin ratio. The hormonal combination of 2,4 dichlorophenoxyacetic acid (2,4D)+kinetin was recorded as most appropriate for high percentage of callus induction (70-73%), fast growth rate of viable and healthy callus. Rhizogenesis and embryogenesis from callus tissues of Aquilaria malaccensis could be accomplished. In laboratory conditions, large scale and rapid callus production protocol has been established which may be utilized for in-vitro biosynthesis of biochemical principles of commercial importance. This may help in reducing uncontrolled overexploitation of this endangered tree species while giving an important opportunity to conserve the natural population in the wild habitats of the region in particular and other habitats in general.