Avocado trees are generated naturally in jungles and swamps. If you are using an existing world, you will only see avocado trees appear in previously unexplored terrain.
Avocado trees will shed avocados over time; although extremely rare to occur, no more than 8 dropped avocados may exist underneath an avocado tree at any one time. The leaf blocks of an avocado tree will also sometimes drop an avocado when broken.
To plant an avocado tree, obtain an avocado seed from an avocado and then right-click to place an avocado sapling.
The wood of an avocado tree is equivalent to pine wood.