Wood is one of the most valuable and abundant renewable materials. Development of wood-based advanced products comprises an important and exciting area of research. In recent times, replacement of traditional technology for the improvement of wood preservation and drying has drawn substantial scientific interest. These technologies are important for improving the functional properties of wood. More accurate and rapid determination of wood properties adds value to the appropriate utilization of wood and its aesthetic value, which plays a significant role in the market. In this regard, lasers are a promising technology in wood science for architectural essence and furniture making to toys and fine crafts. Utilizing this technology ranges from simple incision to development of advanced wood-based products and ensured environmental sustainability. Better elucidation of the working principle and optimisation of lasers in wood science promotes opportunities for the development of industrial wood-based products. This review, critically presents various laser applications that improve wood functionality and have the potential to enhance sustainability of wood-based products and industries.