Resumo. Erythrina velutina Willd. (Fabaceae) is used in traditional medicine in northeastern Brazil for its sudorific properties, soothing, emollient, pectoral and local anesthetic. The aim of this study was to evaluate the effect of substrate and shading on seedlings of Erythrina velutina. The experimental design was completely randomized in factorial scheme 5 x 2 (five substrates and two shades), with four replications and 10 plants in each plot. The substrates were arisco, arisco + cattle manure 2:1 v/v, arisco + cattle manure 3:1 v/v, sand + cattle manure 2:1 v/v, sand + cattle manure 3:1 v/v. The shadings were 0% shading (full sunlight) and 50% shading. The characteristics evaluated were stem diameter, height, leaf area, green and dry biomass of roots and shoots, height/diameter and Dickson quality index.There was no significant difference in diameter between the different substrates. The environment in full sun favored the diameter and the root biomass whereas the height was favored by shade. The substrates with cattle manure in its composition favors the development of plants of Erythrina velutina and higher seedling quality are produced in full sun and substrate arisco + cattle manure in the ratio 2:1.