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Phenol-formaldehyde (PF) resol resins were produced by substituting up to 20 wt% of phenol with bio-oil by modifying the chemical synthesis process. Pine sawdust was converted into renewable chemical feedstock for the production of bio-oil modified PF resins. FT-IR analysis was performed to characterize the organic functional groups in bio-oil modified PF resins. In comparison to a commercial and lab-made PF resins, the bio-oil modified PF resins were found to have larger average molecular weights, higher polydispersity indices and shorter gel times. The plywood composites produced with bio-oil modified PF resin up to 20 wt% had better mechanical properties and wet bond strength as compared to commercial and lab-made PF resins.