Neolamarckia macrophylla is an endemic, fast-growing tree naturally distributed across Sulawesi and the Maluku Islands, Indonesia. N. macrophylla is a species used for plantations and community forests; however, its propagation is constrained by limited high-quality seed sources. This study estimated genetic variation, heritability, genetic correlations, and predicted genetic gains for growth and wood-quality traits in a 6-y-old progeny test at Parungpanjang Research Station, Bogor, consisting of 72 families from 10 populations. The traits measured were tree height, diameter at breast height (DBH), tree volume, pilodyn penetration, wood moisture content, wood density, and specific gravity. Family effects were statistically significant for height, DBH, volume, moisture content, and density; block × family interactions were statistically significant for several traits. Stem diameter showed strong genetic correlations with tree height (0.502), volume (0.582), and pilodyn penetration (0.464). Pilodyn penetration was also genetically correlated with wood density (-0.507) and moisture content (0.595). The key selection traits identified were stem diameter and pilodyn penetration, which were strongly correlated with growth and wood traits. Pilodyn penetration is a practical, fast, and non-destructive method that does not require laboratory testing, making selection based on wood quality more efficient. By applying within-family selection at 25% (one best tree per four) combined with a ~40% family retention (43 retained of 72 families), results show meaningful increases in diameter and volume while producing only moderate, correlated changes in wood-quality traits.