In recent decades, due to the increase in environmental awareness and noticeable environmental degradation, the area of wood waste management has attracted increasing attention. For this reason, the sustainability of production systems in wood processing, the wood industry and the disposal of wood waste is an important issue for European industry and society. Proper development of products based on renewable wooden resources gives an opportunity to provide materials with long-term environmental, social, and economic sustainability. Nowadays, the problem of wood-like waste management and associated risks are an increasingly noticeable challenge for modern science. Over the last decades, several methods of wood waste management have been developed, but these methods still cannot be recognized as fully ecological. A large amount of wood waste is still incinerated for the production of electricity and heat. Although this method of waste management allows for partial use of the potential of wood, it is associated with the generation of a certain amount of greenhouse gases. Moreover, a raw material with a high production potential is irretrievably lost. Therefore, there is huge need for implementation of more sustainable solutions in wood waste management. To optimize the use of valuable waste, the European Union has announced Directive 2018/851 that specifies how solid waste should be managed. This directive presents a hierarchy for the management of all types of waste, which refers to the pyramid of waste management. According to this hierarchy, methods such as recycling and reuse of wastes are preferred than energy recovery. Sustainable wood waste can reduce the consumption of raw wood raw materials, limit the deforestation process, and preserve the biodiversity in forests. Therefore, there is an urgent need for innovative technologies, which will enable efficient processing of wooden wastes into full-value products.