The effect of adding waste polyethylene (WPE) was investigated at various ratios on some physical and mechanical properties of oriented strand board (OSB) panels. All of the test panels were bonded with 6% phenolformaldehyde resin in three layers. The manufacturing parameters was 0/100, 10/90, 20/80, 30/70, 40/60, and 50/50 by weight% of WPE/wood strand. All the boards were manufactured to achieve targeted specific gravity of 0.65 g/cm(3). Polyethylene improved the water resistance of the OSB panels because of its hydrophobicity. Based on the results of this study, thickness swelling, humidity, dimensional stability, water absorption, and screw withdrawal resistance of the samples were improved significantly. However, MOE, MOR, and internal bond strength values of the samples decreased with increasing WPE in the panels when compared to the control panels but met minimum requirements in EN 300 (type 1-2-3-4) control panels. The conclusion was reached that waste polyethylene can be used in the manufacture of OSB panels, resulting in the enhancement of above mentioned physical and mechanical properties, as well as a safe disposal and economical utilization.