Alkyl ketene dimer (AKD) was used as a hydrophobic agent for PF-bonded particleboards. In contrast to conventionally used paraffin, AKD can be covalently bonded to the chip surface by esterification with wood hydroxyl groups. FTIR analyses before and after toluene extractions indicated that only a small amount of the applied AKD is chemically bonded. Wettability studies on veneer strips suggested that particularly the bonded AKD accounts for the surface hydrophobicity.A subsequent spraying of AKD and PF resin on the chips that were pressed for 15, 30, and 60 s mm −1 (Process 1) did not result in decreased thickness swelling and water uptake as compared to the control boards. In Process 2, chips were cured (130• C/6, 12, 24 h) prior to pressing (15 s mm −1 ) which did not impart significant hydrophobicity either. The low efficacy of AKD as hydrophobic agent in Process 1 is attributed to the hydrolysis of AKD by water vapor during pressing. The low hydrophobic effect of AKD in Process 2 is ascribed to a saponification of esters between AKD and wood hydroxyl groups by the alkaline PF resin.