Canadian wood species such as spruce and pine are difficult to treat with wood preservatives or other wood enhancing formulations due to a thin sapwood band and refractory heartwood. One method of improving penetration is by biological incising. Biological incising with Dichomitus squalens was originally developed in Austria in the 1990s to increase the permeability of European spruce prior to treatment with wood preservatives. Recently the patents on this technology lapsed. It was considered unlikely that industrial use of a European white-rot fungus would be acceptable in Canada. FPInnovations therefore conducted a screening test of a range of Canadian isolates of various white-rot fungi to identify an isolate that would be suitable for biological incising of Canadian spruce and pine. Under pure culture conditions, one isolate of Dichomitus squalens isolated from white spruce was found to greatly increase the permeability of the wood, particularly in spruce. The objective of the current study was to determine if these results could be achieved on commercial sized wood under non-sterile conditions more similar to an industrial setting. Lumber samples, 3.8 cm by 8.9 cm by 400 cm in length were incubated in plastic totes with fungal inoculum. Two isolates of fungi were tested as well as two different decontamination methods (steam and Benomyl solution) and two time frames (4 and 6 weeks). Through treatment of spruce samples (19 mm penetration) with 1.7% ACQ was achieved after six weeks incubation with D. squalens 78A (a spruce isolate). In matched samples treated with MCA, a minimum of 10 mm penetration was achieved in 90% of the samples. Strength loss in some individual samples was higher than adjustment factors for conventional incising (over 25%) suggesting that incubation time may need to be shortened. Preservative penetration was more variable in pine but permeability was increased; 60% of the samples reached a minimum penetration of 5 mm. Incubation time and conditions may need to be adjusted to achieve more consistent results. The results of this study show that biological incising can greatly improve the permeability of spruce and pine and can be achieved on 38 by 89 dimension lumber under conditions that could be utilized in an industrial setting. Future work should focus on determining incubation conditions that allow penetration requirements in Canadian standards to be met with acceptable strength loss.