Needle tip dieback of 2-0 ponderosa pine seedlings at the Coeur d'Alene Nursery was investigated. Organisms associated with dieback symptoms were identified and infected trees were transplanted to determine disease effects on survival. The major fungus colonizing necrotic needles was Lophodermium nitens, a close associate of L. pinastri. The fungus often sporulated on the necrotic distal portion of needles. Necrotic tips were often broken during lifting and handling of seedlings. Most infected trees produced a new flush of foliage after transplanting and probably recovered from the disease. Control of the disease is not warranted.