Tabebuia aurea (Benth. & Hook. f. ex S. Moore) (Bignoniaceae) is a boreal species common in Brazil. It is used for ornamental parks and along sidewalks. Its timber is also used for furniture. The objective of this study was to evaluate the effect of nursery shading on the growth and photosynthesis of T. aurea and their photosynthetic adaptation after being transferred to direct sunlight. The T. aurea seedlings were grown under 0, 50, 70 or 95% shade. The photosynthetic active radiation and leaf gas exchange were measured over two distinct periods: 51 (young seedlings) and 70 days after having been sown under each shade treatment. Immediately after the measurements were taken, the seedlings were transferred into full sunlight and the measurements were repeated two times after 15 min and 3 days under ambient sunlight. T. aurea seedlings showed satisfactory growth up to 50% shade in the nursery, which could be verified both by growth measurement and by total biomass accumulation. Shading greater than 70% reduced the number of leaves, the leaf area and the stem diameter in relation to plants exposed to full sunlight. The results suggest that T. aurea seedlings should be grown under full sunlight or under shading up to 50% to maximize their growth in the nursery and to minimize stress when transferring the seedlings to their final planting sites.