Sago palm is susceptible to stem rot once it is established, particularly if grown on poor-draining soil that is receiving too much moisture. If your sago palm is beginning to rot, cut the rotted section out. Let those areas dry and apply a fungicide to prevent further spread. Decrease your watering schedule, keeping in mind that the plant can tolerate periods of drought. If the plant is completed rotted, it should be thrown away as it is not likely to recover. Whenever the sago palm is wounded, it should be coated with a general fungicide to prevent infection.
It may be necessary to replant your sago palm in a location with more aerated soil. Before planting, check the drainage by filling a hole with water and noting the speed with which it drains. Use loose, well-draining soil that is broken up. Mulch with organic mulch, but keep the mulch away from the trunk of the plant to prevent rot. Sago palms easily rot with too much moisture in the soil.
Sago palms and other cycas are reproduced through rooting of their "pups," which are the offsets that grow from the main trunk. Remove in spring with a sharp knife and allow to air dry completely. The rooting pups are susceptible to root rot if grown in soil that is too wet. Provide soil with only moderate moisture and plenty of sand or perlite. Dip pups in fungicide before planting to prevent rot.
Cycads are unique in their ability to store water and nutrients in their trunks. For many months, they will use these nutrients and moisture as their root systems develop, making them quite hardy and easy to propagate. Do not assume your plant is dead if few leaves are present; the root system may be developing. Growth only occurs during two flushes a year, so little fertilizer is required for growth.