Sexual selection arises from both intrasexual competition and mate choice. With respect to the evolution of male traits, there is a vast literature documenting the existence of female choice and male-male competition, and both have been shown to co-occur in many species. Despite numerous studies of these two components of male reproductive success in isolation, few have investigated whether and how they interact to determine total sexual selection. To address this, we investigate male territoriality in Drosophila serrata, a species in which female preference for male sexual pheromones (cuticular hydrocarbons or CHCs) have been extensively studied. We demonstrate that territoriality occurs, that it involves direct male-male aggressive interactions, and that it contributes to variation in male mating success. Results from a phenotypic manipulation also indicate that territorial success is condition-dependent, although a genetic manipulation of condition, involving three generations of full-sib inbreeding, failed to find a significant effect. Finally, selection assays also suggest that territorial success depends on male body size but not on CHCs, whereas the opposite is true for mating success.