In this study, the effects of knots and splits -ta k en into consideration in appearance grading of plyvvood panels- on the bending strength and m odulus of elasticity values o f the plyvvood w ere investigated. The E ucalyptus plyvvood panels consisted of both E class veneers in tw o outer layer and E class in one, first or second class veneers1 in the other outer layer vvere produced for this aim. The bending strength and the m odulus of the elasticity values of the panels vvlıich have only one outer layer having knots w ere significantly low er than those of the panels produced from the knot free veneers. W hen com pared \vith the control panels, the decrease in bending strength of the panel \vhich has only one outer veneer having splits vvas not significant.