ABSTRACT The use of pre-sprouted seedlings in the implantation of sugarcane crops not only reduces the establishment period and production costs, but also has other advantages, such as a lesser requirement of propagules (stems) and greater phytosanitary control of the seedlings, when compared to conventional planting. Commercial substrates are also expensive and their use increases the cost of seedlings. This study aimed to evaluate the quality of sugarcane pre-sprouted seedlings grown on substrates with different proportions of decomposed babassu palm stem (DBPS), as well as to recommend the substrate formulation that provides the most favorable environment for the growth and development of sugarcane pre-sprouted seedlings. For preparation of the substrate (S), DBPS and soil were used in the following proportions: S1: 0 % of DBPS + 100 % of soil; S2: 20 % of DBPS + 80 % of soil; S3: 40 % of DBPS + 60 % of soil; S4: 60 % of DBPS + 40 % of soil; S5: 80 % of DBPS + 20 % of soil; S6: 100 % of DBPS + 0 % of soil. The use of S2 and S3 considerably improved the seedling quality parameters, such as sprout diameter and length, number of leaves and total, shoot and root dry mass. However, from an economic point of view, S2 is recommended for use.