Abstract: Phenolic effluent from the manufacturing process of phenolic resin often contains formaldehyde, methanoic acid, etc.,so it is hard to be treated by absorption, extraction or biochemical means.Studies and experiments show that it can be used to produce a kind of wood binder, whose cohesive strength (shear strength) may reach 4.9 MPa, much higher than that of the all purpose wood binder being only 2.5-2.8 MPa. One ton of the phenolic effluent can be turned into 3 tons of the special wood binder, creating significant economic and environmental benefits.