Abaca (Musa textilis) is a plant related to the banana, the leaves of which provide some of the strongest natural fibres used by man. It is indigenous to the Philippines, and grows well particularly in the provinces of Bicol, Samar and Leyte. Abaca is also one of the few cash crops that can grow with relatively little input compared to other crops, in steep forest areas. For this reason, it is often the crop of choice of households living in villages at the forest edge. The role of abaca in the household economy of villagers in Leyte is described. The study shows that abaca is both an important secondary income source of households with lowland farms, and frequently the only source of cash income of the poorest households in the community. The implications of abaca's niche in the village economy, on increasing production of the crop, are discussed.