The research is devoted to material resources analysis of the Republic of Karelia timber industry for the production of construction materials and to the optimal directions search for wood waste and illiquid wood use. The requirements for raw materials are analysed and inconsistencies in the classification of wood waste resources are revealed. Various methods of wood processing are considered and characteristic features and limitations on the applicability of raw materials in terms of size, quality, and breed characteristics are revealed. The conclusion is made about the main sphere of use of wood waste and illiquid wood, which is construction – civil, industrial, agricultural and architectural and aesthetic. The main directions of research are formulated to find ways to dispose of wood waste allowing for more complete use of their specific properties.