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In this paper hydraulic system of a modern forest machine, different types of biodegradable hydraulic fluids and the use of biodegradable hydraulic fluids in Timberjack forest machines are described. Today there is a wide variety of biodegradable hydraulic fluids in the market. These hydraulic fluids must meet the biodegradability requirements and also the functional requirements from component manufacturers and machine manufacturers. It is a difficult task to select the right fluid for different applications and operating conditions. Many times selection is based on experience.