ABSTRACTIn this study, a low‐cost diatomite was used to partly substitute wheat flour as one type of melamine–urea–formaldehyde (MUF) resin filler. Five‐ply plywood was fabricated, and its performance was measured. The crystallinity, fracture surface, and functional groups were tested to determine the effects of diatomite on the performance of the MUF resin. The results show that diatomite was well distributed in the MUF resin system and formed an embedding structure; this improved the wet shear strength of the resulting plywood by 33% to 1.36 MPa. Diatomite captured the free formaldehyde in the resin and the microporous structure formed in the resin accelerate formaldehyde release of the plywood. Consequently, the formaldehyde emission of the plywood was reduced. The diatomite partly replaced wheat flour as an MUF resin filler and could be applied in the plywood industry. © 2016 Wiley Periodicals, Inc. J. Appl. Polym. Sci. 2016, 133, 44095.