Nothofagus leonii (huala) is an endemic species of the Mediterranean area of Chile for which available information for the propagation and nursery cultivation is conspicuously lacking. In the present study we analyzed the effect of shading and fertilization in the early development of seedlings during one growing season. Three shade treatments (0, 50 and 80 %) and three doses of a slow release fertilizer (3, 6 and 9 g of Basacote (R) plus 9M per liter of substrate) were studied for effects on N. leonii growth (root collar diameter, height), biomass (dry masses of leaves, shoots and roots) and physiological (chlorophyll a content, chlorophyll fluorescence) responses. Analyses showed a significant effect of the shading. Plants treated with 0-50 % shade are significantly superior to those under 80 % shade. No differences were found for fertilizer applications. Nothofagus leonii grows more efficiently under 50 % and it would be possible to produce plants similar to 25.5 cm long stem and similar to 3.2 mm diameter root collar. Results suggest that N. leonii could require some degree of protection from direct sunlight in their early stages of development.