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Despite high deforestation rates in dry forests there are few assessments of the impacts of this transformation on biodiversity. This study addresses the impact of clearing on plant species composition and diversity in mulga ( Acacia aneura) forests of Queensland, Australia using data collected from either side of 58 clearing boundaries, incorporating data on site and management conditions. The physical and climatic conditions of the study sites were narrowly constrained but had greater influence on plant composition and richness than clearing per se. In general, the abundance of perennial forbs and shrubs was higher in cleared forest compared with adjacent intact forest and there was no significant difference in abundance of other plant life forms. Perennial forb richness diminished with the age of clearings, particularly where acid sub-soils had been exposed and shrubs proliferated. Where deforestation in the mulga dry forests is not accompanied by the establishment of exotic pasture it has a relatively benign effect on plant diversity, mulga itself remains in high density as small trees and the integrity of the forest could be maintained with restoration. [ABSTRACT FROM AUTHOR]