There are several word formation processes, in Oyda. What they all havernin common is that they take an existing base and produce a new form.It isrninvestigated that only nominals, verbals and adjectivals can be used as bases inrnthe formation of derivatives and that only these form classes can be the productsrnof word formation. Therefore, the body of this study explores the nominalization,rnverbalization, adjectivalization and compounding processes.rnIn the process of nominalization, the paper examines the derivation ofrnabstract, agentive, manner, gerundive and process/result nominals. Regardingrnverbals, the thesis presents the derivation of causative, passive, intensive/iterativernand reciprocal verbals. In the formation of adjectivals, the study analysisrnadjectival forms produced by different derivational suffixes, such as –iDe, -its,-rnanco, -e, -a –o and –ma.rnConcerning the process of compound words, the paper also discusses thernformation of compound nominals, compound adjectivals, and compound verbals.rnBesides, the phonological, morphological, syntactic and semanticrnconstraints observed in the process of nominalization, verbalization,rnadjectivalization, and compounding are examined.rnA number of word formation rules are also developed in order to handlernthe various possible ways of derivation and compounding. Concerningrncompounding the percolation of the category label from the head to the entirerncompounds is visualized by using a feature percolation convention.