Laminated veneer lumber (LVL) is an engineered wood product manufactured from specially selected veneers with varying strength and stiffness properties. LVL products are often specified where a certain span, strength and/or stiffness is required. As such, LVL products are generally designed for and used in applications where they will be highly stressed under design loads. For this reason, field modifications, such as notching, tapering, or drilling should be avoided and never done without a thorough understanding of the effects on the structural capacities of the LVL. Nonetheless, it is not uncommon for the designer and contractor to find a need to cut holes through LVL members for plumbing pipes, electrical conduits, or air ducts. Therefore, it is usually necessary to determine the residual structural capacities of the LVL member when holes are cut. The objective of this paper is to examine the effect of round holes on the structural capacities of LVL, including bending moment, shear, and bending stiffness. Full-scale LVL bending and shear tests were conducted to provide data for characterization of the hole effect. Based on the test data, design equations that account for single and multiple holes up to 2/3 of the LVL member depth and a clear distance of 15% or more of the LVL depth from the edge of the hole to either tension and compression edge of the LVL member have been developed. To ensure safe implementation of such design recommendations in practice, prescriptive limitations, such as the minimum clear distance between the face of a support and the edge of a hole, and the minimum clear distance between adjacent holes, are also prescribed.