Hemicellulose is the most hydrophilic polymer of wood, and as a polysaccharide, it has potential applications in conversion to biofuels. The objective of this study was to enhance properties of flakeboard by extracting hemicellulose. Hot-water pretreatment was performed to extract hemicellulose under different temperatures (140°C, 155°C, and 170°C) and times (30 and 60 min). The flakes were blended with 5 percent liquid phenol-formaldehyde resin and 1 percent wax emulsion. The mat was pressed at 200°C for 5 minutes. The physical and mechanical properties and the susceptibility of flakeboard to mold were studied. Panels made from the hemicellulose-extracted flakes showed remarkable decreases in water absorption and thickness swelling without a decrease in mechanical properties. Resistance of the panels to the mold growth also increased with increasing mass loss due to extraction. The most severe condition of extraction (170°C, 60 min), in addition to having the lowest water absorption and thickness swelling, showed the highest mold resistance.