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Larix olgensis is one of the most important timber species in Northeast China. Although L. olgensis seed orchards have been established for many years and some progeny tests have been conducted, studies of progeny performance and the selection of superior families are still lacking. These tests are important for upgrading and improvement of seed orchards. Here, we estimate the genetic variation for major economic traits between families to provide selection materials for the establishment of a second-generation seed orchard. This study examined 71 half-sib families and 2 control families of L. olgensis in the Xiyang forest seed orchard in Yongji County, Northeast China. We measured tree height, diameter at breast height, volume, branch angle, stem straightness degree and crown width of 4-year-old progeny. Genetic parameters for the studied traits were determined, and comprehensive analyses of multiple traits and breeding values were used for selection of superior families and individual trees within families. The results show that all these traits are significantly different (P < 0.01) among families where family variance was greater than environmental variance. The phenotypic and genotypic coefficients of variation ranged from 9.01% to 78.22% and from 1.81% to 39.20%, respectively. The heritability values of families and individual trees ranged from 0.663 to 0.959 and 0.034 to 0.983, respectively. There was a significant positive correlation between investigated traits. Using the multiple-traits comprehensive evaluation method, seven families and 56 superior individual trees were selected. Selection of superior parents using breeding values for timber yield, stem quality and crown width as a proxy for planting density again resulted in the selection of seven superior families. We determined that the comprehensive multiple-traits evaluation approach is effective for selecting superior families and individual trees for the establishment of advanced second generation seed orchards. Families selected based on breeding value may be used as preferred parents for future hybridization breeding. [ABSTRACT FROM AUTHOR]