An estimated 2.9 billion board feet of wood waste was generated from discarded pallets in 1987, most of which was disposed of in landfills. However, available landfill space is decreasing, landfill costs are increasing, and solid waste reduction has the nations attention. Problems and costs associated with the disposal of discarded pallets are beginning to alarm the pallet producing and pallet consuming industries. Fortunately, there are potential uses for discarded pallets. The objective of this research was to characterize the physical and chemical properties of wood particles produced from mechanically ground discarded wood pallets. These characteristics include moisture content (MC), ash content, higher heating value, moisture holding capacity, particle size distribution, and level of chemical contamination. This information was used to determine the suitability of material for marketing as poultry litter, livestock bedding, and fuels. The wood particles were found to be low in MC and ash content and had relatively high net heating value, rendering the material an excellent industrial fuel. The wood particles were also found to have good moisture holding capacity, and acceptable level of fines, and low levels of chemical contamination, rendering the material excellent poultry litter or animal bedding.