In a pot or in the ground?

It is in a pot? It has new growth but the lower branches are shedding their leaves.

These plants do shed leaves year round, just a few at a time, normal leaf loss. However, if its been in the same pot for more than 18 months to two years, and the pot's not very big, it might be potbound - if it is, that makes it difficult for the plant to ever get enough water, even if you water regularly. Alternatively, if there's no sign of infestation or disease, have you been watering sufficiently well?

I have four bay trees in my garden. I've had them for years. They are really easy and undemanding once you understand their needs. The first one is keep well watered. This is easier to do if they are planted in JInnes type compost in a decent size pot. The second is to feed them at least once a year. Something substantial with trace elements. I use a granular feed, just a handful to each pot. Lastly I make sure I trim them into shape each spring. This keeps them nice and compact with a thick coverage of leaf. A few leaves will turn yellow, just with age. If the whole thing is looking a bit sick, it probably needs feeding, potting on or a mix of the two. Hope this helps.

Sorry Bamboo, I think our replies crossed over in transit. I think we both more or less said the same thing!