Abstract Colonisation and wood degradation by three brown-rot fungi, Coniophora puteana, Gloeophyllum trabeum and Poria placenta, were studied in wood of Norway spruce (Picea abies) subjected to three different treatments: hygro-thermal (TH) (160 and 180°C), mechanical densification and thermo-hygro-mechanical (THM) treatment including densification and post-treatment under saturated steam conditions at different temperatures (140, 160 and 180°C). The weight loss induced by all three fungi was lowest in THM-densified wood post-treated at 180°C. Highest weight losses were recorded for controls and TH-treated wood. Fungal colonisation varied in its intensity, depending on the treatment applied to the wood. Hyphal growth in controls and TH-treated wood was abundant, whereas in densified and THM-densified wood it was sparse and confined predominantly to the cell lumina of earlywood tracheids. Also, penetration of large-diameter hyphae and associated degradation in THM-densified wood was impeded by occlusion of the lumina, associated with irreversible compression (loss in shape memory). In contrast to C. puteana and P. placenta, which showed typical brown-rot behaviour, G. trabeum frequently showed hyphal tunnelling within the secondary walls of tracheids and xylem ray parenchyma of controls and thermally treated wood. Such growth was never observed in THM-densified wood post-treated at 180°C.