Preparation of hydroxyethylated wood-phenol resin adhesives has been attempted. The steam-explosion pretreatment or the phenolysis of the chemically modified wood was found to enhance its solubility making it feasible to prepare adhesives with good properties and workability. Thus, water soluble hydroxyethylated wood-phenol resin adhesives, comparable in gluability with the commercial resol type phenol resin adhesives could be obtained. The JIS specification for the dry adhesive strength was easily surpassed in case of these adhesives. By setting the glue line temperature at 130–150°C, which is necessary for three-dimensional curing of resol adhesive, and using other suitable gluing conditons, water-proof adhesion was also attainable. The water-proof adhesion could be enhanced by the addition of crosslinking agent (polymeric MDI) into the hydroxyethylated wood-phenol resin adhesives, resulting in fulfilment of the JIS specification for both the dry and water proof adhesive bond strength.