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Balled in burlaped is a common method for moving large trees into landscapes and affects of transplanting on tree gas exchange and growth has been documented. Organic mulch provides many benefits and is often recommended for landscapes. Because little research has been conducted on affects organic mulch has on gas exchange and growth of transplanted and non-transplanted trees, this research investigated the effects transplanting and organic mulch have on gas exchange and growth of field grown red oak (Quercus shumardii) trees. In March 2003, 12 multi-trunked trees were selected from a tree farm near Lubbock, Texas, and six trees were dug using a tree spade and placed in their original location. Mulch at a depth of 10 cm was placed around the rootball of 3 transplanted and 3 nontransplanted trees and maintained at this depth the remainder of the experiment. Over the next three growing seasons predawn leaf water potential and midday stomatal conductance were measured on each tree every 1 to 3 weeks. At the end of every growing season shoot elongation, stem caliper and subsample leaf area were recorded. Our data indicates transplanting has a negative affect on gas exchange and growth of red oak. Each growing season gas exchange, shoot growth, and subsample leaf area were less for transplanted trees when compared to nontransplanted trees. Mulch also influenced gas exchange and growth of these trees. For nontransplanted trees with mulch, gas exchange and growth were reduced when compared to nonmulched, nontransplanted trees. For transplanted trees with mulch, predawn leaf water potential was less negative and subsample leaf area was greater when compared to transplanted trees with out mulch.