Natal dispersal is a key life-history component that may be influenced by t
he fitness consequences of inbreeding. We studied natal dispersal and inbre
eding within a large population of cooperatively breeding, endangered Red-c
ockaded Woodpeckers (Picoides borealis). We assessed the costs of close inb
reeding, the spatial distribution of related males and its relationship to
dispersal distance of females, and the change in dispersal behavior of fema
les in the presence of closely related males. Close inbreeding resulted in
a significant loss of fitness, through two separate effects: closely relate
d pairs (kinship coefficient greater than or equal to 0.125) exhibited lowe
red hatching rates and lowered survival and recruitment of fledglings relat
ive to unrelated pairs. Despite a highly predictable spatial clustering of
closely related males near the female's natal territory, natal dispersal di
stance of females was not sufficient to avoid these males as mates. Females
changed dispersal behavior in the presence of closely related males on the
natal territory: female fledglings were significantly more likely to dispe
rse from natal territories if there were closely related males breeding the
re in the following year. Females did not change dispersal behavior in the
presence of related males that were not on the natal territory. We suggest
that dispersal behavior is a trade-off between benefits of shea-distance di
spersal, e.g., an advantage in competing for scarce breeding vacancies, and
the substantial cost of close inbreeding.