The bioincising impact of Physisporinus vitreus and Xylaria longipes on the porous structure, and permeability of Douglas-fir containing compression wood was investigated. Fungal cultivation was carried out at 25°C and 85% relative humidity in an incubator for three time periods, namely, 15, 30 and 45 days. Safranin solution was injected into wood specimens to evaluate liquid permeability whereas air permeability was measured by the falling-water method. Wood exposure to both fungi enhanced permeability by increasing incubation period. However, the parallel compression strength of wood reduced. Microscopic imagery revealed degradation of bordered pits, bore-hole formation through tracheid walls as well as ray damage which are thought to be main reasons for improvements in air and liquid permeability. No pronounced differences were found between the fungi in their effects on permeability. Parenchyma rays were also shown to play an important role in the radial permeability of Douglas-fir compression wood.