Wood is a material that is directly derived from trees, a natural resource. Recycling wood is crucial to ensure that the existing forests are not depleted. Recycled wood can be used for a number of purposes such as building a bird cage in the garden or saw dust and wood shavings could be added to a compost heap. Recycling wood helps in reducing the cost of disposing of old and unwanted wood.

The amount of wood waste generated by the manufacture, use and disposal of solid wood products in the US in 2002 amounted to 63 million metric tones. This waste wood is derived from a number of sources, the two main sources being municipal solid waste and construction and demolition waste. Municipal solid waste is obtained from residential, commercial, industrial and institutional sources. Some of the common forms of wood waste that fall into this category include wooden containers, packaging, storm debris, damaged furniture, etc. One of the main sources of wood in MSW is old tables, furniture and cabinets, pallets, containers, scrap lumber and wood panels. Another important source of wood is yard trimmings.