Pallets are widely used to store and handle goods and are often subjected to bending and impact loads. Their Productions annually consumes 20 percent of the lumber manufactured in the United States. The consequences of structural failure of a loaded pallet can include loss of goods, increased labor and equipment costs, and possibly severe or fatal injury to workers. This paper discusses a methodology to design pallets for strength, stiffness, and durability that was developed by a joint university-industry-government task group. Simplified structural analysis models were empirically and theoretically verified. The procedure uses a classical beam theory and matrix structural analysis techniques to analyze pallets in four general support modes and loaded with five types of loads. Material properties are estimated by modifying cleat wood properties, similar to ASTM D-245, and from in-grade testing of pallet lumber. A reliability-based procedure was used to account for load and resistance variability and to provide safety in the resulting designs. The design methodology was computerized for common microcomputers and can be used by manufacturers and pallet users.