Biological resistance and some related properties of phenolic resin treated wood were investigated. Full-sized wood of western hemlock (Tsuga heterophylla) was impregnated with a low molecular weight phenolic resin (Mw:170) and heat-cured. Decay was virtually prevented at 14% (w/w) of resin loading in 12-week laboratory test using Tyromyces palustris and Coriolus versicolor. Treated stakes with 16% resin loading were free from termite attack for two and a half years of field exposure. Fiber saturation point, equilibrium moisture content, and pore ratio of wood were reduced by the phenolic resin treatment. From these results, the virtual elimination of fungal and termite attack by the treatment can be explained on the basis that the hydrophilic and accessible hydroxyl groups are blocked and that some possible barrier is formed within the cell wall by the deposit of phenolic resin.