The combustibility of timber is one of the main reasons that many building regulations strictly limit the use of timber as a building material. Fire safety is an important contribution to feeling safe, and an important criterion for the choice of building materials. Historically, the combustibility aspect of wood has been a disadvantage for using timber as a construction material. The main precondition for an increased use of timber in buildings is providing adequate fire safety. This paper reviews the opportunities and challenges to reach this goal by implementing Fire Safety Engineering and Performance Based Design principles.