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In northern Laos, shortened fallows in the slash-and-burn upland rice system are not sustainable either from a production or economic standpoint. This paper evaluates the potential for using the indigenous fast-growing tree, Broussonetia papyrifera L. Vent. (paper mulberry) as an economic fallow crop. The objectives of this study are to assess the inner bark yield of paper mulberry, and to evaluate rice productivity following paper mulberry cultivation. In addition, allometric models for estimating the inner bark yield of paper mulberry are developed. Inner bark yield of paper mulberry stands ranging in age from 9 to 48 months ranged from 10 to 208 g m−2, and increased with age. The models using diameter at breast height and stem height, or diameter at breast height only as independent variables explained well the variation in inner bark yield. When paper mulberry was completely removed during the rice growing season, rice yields in these areas were similar to those following weedy bush fallow. When paper mulberry was allowed to grow, rice yields were negatively correlated to paper mulberry stem density. When paper mulberry lateral branches were pruned back, rice yields could be maintained if the paper mulberry stem density was