Kraft lignin phenol formaldehyde resin has certain advantages as a binderin oriented strand board manufacture over the other commercially exterior resins. Since kraft lignin is used as substitute for almost 50% phenol in a typical resin, kraft lignin phenol formaldehyde is not only environmentally friendly but also less expensive as compared to other exterior binders used in wood composite industry. The objective of this study is to evaluate the potential of such resin to produce experimental oriented strandboard panels. Aspen (Populus Euroamericana cv.) was used as raw material to manufacture panels under the laboratory conditions. Bending properties including modulus of elasticity, modulus of rupture, internal bond strength, thickness swelling, and water absorption of the samples were determined. Panels made using two types of resins, namely kraft lignin phenol formaldehyde resin and phenol formaldehyde for the control samples. Average modulus of elasticity and modulus of rupture values of the control samples were determined as 2400N/mm(2) and 22.03 N/mm(2), respectively. Corresponding values for the panels produced using kraft based resin were 2S39 N/mm(2) and 20.33 N/mm(2). Based on the initial findings of the study both mechanical and physical proper-ties of the panels were not adversely influenced by modified resin. It appears that kraft lignin phenol formaldehyde resin has some potential for oriented strandboard manufacture. Test results revealed that all properties met the minimum requirements specified in related standards and comparable to those commercially manufactured oriented strandboard. panels. (C) 2007 Published by Elsevier B.V.