Field experiments were conducted to investigate the effect of alley cropping vegetable crops with Leucaena leucocephala (Lam.) de Wit for two seasons on a sandy loam Oxic paleustalf in southwestern Nigeria. Four vegetable crops (Amaranthus cruentus L.; Celosia argentea L.; Okra, Hibiscus esculentus L.; and tomato, Lycopersicon esculentum Mill.) were grown in control plots and in 4-m wide alleys between established Leucaena hedgerows without and with fertilizer (30 N-13 P-24 K kg ha-l). Leucaena pnmings yielded large dry biomass and nutrients during both seasons. Yield of four vegetable crops responded more to fertilizer in control than in alley cropped treatments. Better yield of vegetables in alley cropped plots was in part due to fallowing effect of the Leucaena hedgerows. Fertilizer application increased mean yields of Amaranthus, Celosia, okra and tomato by 325, 164, 47 and 94% in control plots and by 36, 26, 4 and 20% in alley cropped plots, respectively. For both seasons, yields were not significantly different between alley cropped with and without fertilizer and the control with fertilizer treatments. Yield was least in control without fertilizer. Alley cropping with Leucaena can reduce fertilizer requirement for vegetable production. Cost and return analysis using 1988 prices indicated that alley cropping with vegetable crops can be profitable.