Abstract Nanotechnology has a huge potential to develop novel wood composites with enhanced properties. Engineering plywood panels having improved physical and mechanical characteristics by nanotechnology was the main goal of this work. Melamine urea formaldehyde resin used to produce plywood panels was reinforced with various nanomaterials at different loading levels. Density, moisture content after submersion, thickness swelling, water absorption, modulus of rupture, modulus of elasticity, bonding strength, and screw withdrawal strength of the plywood panels were carried out according to national or international standard methods. The results obtained in this study showed that nanomaterial reinforcement significantly affected the physical and mechanical characteristics of the plywood panels. The findings indicate that it is possible to produce novel wood composites having improved performance properties by using nanotechnology.