The wood of Dalbergia paniculata is unique as it consists of concentric layers of broad xylem, alternating with bands of narrow phloem. This anomaly results from the periodic formation of successive cambia in the secondary phloem. Some phloem parenchyma cells dedifferentiate to form a discontinuous ring of cambium. Such parenchyma cells have higher succinate dehydrogenase activity than the neighbouring cells of secondary phloem. The newly differentiated cambial layer functions bidirectionally, and its products give rise to xylem internally and phloem externally. The phloem along with cambium present internal to the newly formed xylem becomes included.
The wood is diffuse-porous and the intervessel pits are vestured. The phloem has welldifferentiated sieve tube members and companion cells.