Abstract: Damages caused by pests and diseases were observed in 2-year-old teak plantation in Kendal Forest district, Central Java. The plantation was established using containerized plantlets produced from tissue culture technique and planted through taungya system with corn and groundnut as intercrops in two compartments. Results showed that some less important pests commonly observed in direct seeding of teak plantation turned out to become prevalent damage in both compartments. Bee hole borer, commonly present sporadically in teak plantation, infested up to 12.6% of the total sample trees. Pink disease caused by Corticium salmonicolor affected the young trees up to 8.50%, and root wilt disease at the average of 7.65% in both compartments. It might be true that the significant damage of young plant caused by pests in the compartment was still beyond tolerable threat, but since all the damages were concentrated on the main stem of the young plant, they could result in dying up or broken the stem above the point of attack. These problems appeared to be associated with the higher input of planting management, involving close cultivation of taungya crops and intensive work of soil. Cultivation of crops especially corn increases humidity and favouring incidence of pink disease. Intensive work of soil prior to and during the taungya period may cause root injury facilitating invasion of root pathogen. Additional watering for a short time in early dry season will bring along the samples to sudden water stress during the rest of the dry period.