The aim of this article was to present results of research allowing for comprehensive analysis of the competitive position of the wood sector industries in domestic and European market. Research included such industries as: wood, pulp and paper, and furniture. The analysis of the competitive position of the wood sector was done based on statistical data. The research was retrospective and covered the period of 2002 -2006. The competitive position of the wood sector industries is strong on domestic market. Compared to other processing industries the wood sector is characterized by high and constantly growing dynamics of exports and financial and economic results which are better the average. Wood materials and products amount to 11% of Polish exports. The main product group in Polish trade is furniture - almost 90% of its domestic production is exported. Polish wood sector has a very good competitive position in the European Union and the best position within it has the furniture industry. Almost 80% of the value of exports of Polish wood materials and products goes to the EU market, while in the case of furniture it is 85%. Poland is at sixth position among European furniture producers and is the third furniture exporter in the Community. Compared to the European Union Polish sector is characterized by low labour productivity. The competitive position of the Polish wood sector in the world is also relatively good. It stems mostly from the forest resources we have at our disposal and the position in world production of the trade in wood products, especially furniture and wood-based panels. Polish wet-process softboards are in second place in world export and furniture in the fourth. In foreign markets Poland competes with many countries, including the leader of the global wood market - the United States, which is the biggest producer of most wood products.