The Forest Red Gum is one of the key canopy species of the threatened Cumberland Plain Woodland, which along with natural grasslands, is the dominant vegetation type at Mount Annan.
Eucalyptus tereticornis is a relatively fast growing species that can be used as a shelterbelt or shade tree or to control gully erosion. Provenance variation in this species is substantial, so matching provenances to adverse sites (e.g. saline or frost prone) may be critical. This species has been widely cultivated in many overseas countries for firewood, construction timber, particleboard and pulpwood and as a hybrid with E. camaldulensis to remediate saline soils. In Australia, the wood has been used for a wide range of purposes including fuel, charcoal, paper, poles, posts, mining timber, hardboard, machine bearings, heavy engineering construction and particleboard. Natural stands are an important food tree for koalas and a wide variety of nectar-eating birds, fruit bats and possums. It is also a major source of pollen and honey for apiculture.