Abstract: The optimum technical conditions of wood liquefaction are studied using waste wood powder with phenol as catalyst at 160℃, m(phenol):m(wood powder) 5:1,catalyst dosage 1.2 mmol/g, reaction time 6 min, the residue rate can belowered to 3.5%. New residue is originated from liquefied product under prolonged reaction time. Polyurethane adhesives prepared from liquefied wood has the tensile strength of 5 MPa, which meets the application requirement. This study provides basis for its industrial production.