The development of methods for improving wood properties and durability of wood and wood-coating system has been intensified lately. Wood properties such as dimensional stability, water repellency, biological resistance, lightfastness in ultraviolet (UV) and visible spectrum, and even mechanical properties, can be improved by modification methods, such as heat treatments and chemical modifications. Furthermore, the application of new finishing materials which incorporate nano-sized particles may lead to improved hydrophobicity and resistance to UV radiation. Heat treatments and acetylation are currently being commercially applied in EU, while the efficacy of other experimental modification methods, such as nano-coating finishing, seek final practical affirmation. Due to improved natural properties, wood still remains a competitive building material, particularly in applications for wooden claddings, fences, joinery, garden furniture, as well as for interior furniture and flooring.