This paper discusses the results from the initiative that has been undertaken to utilize residues from oil palm re‐plantation, particularly the oil palm trunk (OPT) for the production of laminated veneer lumber (LVL). Efficient use of such residues is vital in order to minimize the environmental burdens associated with the disposal of the oil palm residues, thus ensuring the future growth of Malaysian palm oil industry. The bending and compression strength of the OPT LVL produced were accessed and compared with Malaysian oak (formerly known as rubberwood), timber species that is commonly used in the manufacture of furniture in Malaysia. Properties of OPT LVL were found almost comparable to solid Malaysian oak in terms of bending and compression strength. Combination of OPT veneers with several layers of Malaysian oak veneers during the process of LVL manufacturing has resulted in the improvement in bending and compression strength of the LVL as compared to those produced entirely from OPT. In addition, such practice also produced LVL board with far less variation in strength properties as compared to solid OPT properties. With further research and development embarked upon the gluability of the OPT materials, the overall performance of the OPT LVL could be improved for commercial utilization of OPT wastes in the near future. Development higher value‐added by‐products from oil palm industry residues, would benefit the industry through reduction of the overall environmental burden and would place it on a new environmentally sustainable platform.