This paper presents a review of recent developments in the assessment and monitoring of health in Australian eucalypt forests and plantations of pine and eucalypt species, with an emphasis on damage caused by herbivorous insects. The diverse range of interests and priorities amongst Australian stakeholders of native forests and plantations influences the scale, resolution and accuracy of results sought, and this in turn influences how the assessment data are collected, analysed and reported. The authors discuss sampling systems that include extensive ground‐based surveys, permanent plots and airborne technologies being developed in Australia. In all cases, there is an appreciation that the assessment protocols should be objective, repeatable and cost effective. Significant progress has been made in the application of digital, remotely sensed imagery to detect and classify damaged forest canopies. The success of this approach depends, in part, on a sound understanding of the progression of symptoms at the leaf, tree crown and stand scale, especially those symptoms that influence spectral reflectance behaviour.