Biotechnology implies the technical exploitation of biological processes. One of nature's most important biological processes is the degradation of wood and other lignocellulosic materials to carbon dioxide, water, and humic substances. Consequently, there should be possibilities to apply biotechnology to wood conversion. This article summarizes briefly the knowledge relating to the enzymic degradation of cellulose, hemicelluloses, and lignin. However, it is mainly focused upon biotechnological processes in commercial use or in various stages of development for the pulp and paper industry. Areas covered are ethanol and protein production, water purification, development of new bleaching techniques, microbial delignification (biopulping), and development of “biosensors” for analysis of pulp fiber surfaces.