The findings from this study have demonstrated that it is feasible to produce high-quality wafers from sawmill residues through a two-step process (drum chipping/knife ring flaking). The resulting wafers can be used as core furnish to produce strong particleboards at reduced board density and core UF resin consumption. A techno-economic analysis indicated that it is also feasible to use wafers as core furnish in particleboard manufacturing to lower production costs by reducing board density (approx. 5%) and lowering resin consumption in the core layer (approximately 35%).