The need for source reducing and recycling is becoming an increasingly urgent concern. Companies must produce and use environmentally safe and renewable products that are manufactured using minimal natural resources and energy. Pallets, once part of the problem, can now provide solutions. A new presswood pallet, made using damaged logs, wood waste or other wood by-products, is both source reducing and recyclable with its use of natural resources. The pallets are produced from low-grade timber obtained through forest tree thinning, strip mining debris, farmland and urban clearing. The presswood pallets also use pre and post consumer wood waste, including spent wooden pallets and boards. This article describes how presswood pallets provide an environmentally friendly, regulatory-compliant alternative for domestic and export shipping applications.