A multi-source forest inventory (MSFI) method has been developed for use in the Norwegian National Forest Inventory (NFI). The method is based on a k-nearest neighbour rule and uses field plots from the NFI, land cover maps, and satellite image data from Landsat Thematic Mapper. The inventory method is used to produce maps of selected forest variables and to estimate the selected forest variables for large areas such as municipalities. In this study, focus has been on the qualitative variables 'dominating species group' and 'development class' because these variables are of central interest to forest managers. A mid-summer Landsat 5 TM scene was used as image data, and all NFI plots inside the scene were used as a reference dataset. The relationship between the spectral bands and the forest variables was analysed, and it was found that the levels of association were low. A leave-one-out method based on the reference dataset was used to estimate the pixel-level accuracies. They were found to be relatively low with 63% agreement for species groups. An independent control survey was available for a municipality and estimates from the MSFI were compared to it. The levels of error were quite high. It was concluded that the large area estimates were biased by the reference dataset.