It is expected that Cross-laminated timber (CLT) and other engineered wood products will experience rapid growth in the coming years. Global population growth is requiring more housing units, at the same time the negative impact of construction industry cannot stay in the same level as today. Alternatives for concrete and steel reinforced structures are being explored. CLT has proven to be an excellent substitution for concrete regarding construction of buildings up to eight storeys high. In addition to much lower environmental impact, construction process using CLT takes significantly less time due to pre-cut shapes required for specific project. Despite mentioned benefits, there are considerable amount of CLT cuttings generated in this process. Due to irregular shape and small dimensions of these cuttings they are useless for further use in construction. By applying re-processing technology described in this paper, around 70 % of generated cuttings can be re-processed into new CLT panels. In this paper we are evaluating the environmental benefits of re-processing these cuttings into new CLT panels versus business-as-usual scenario with waste disposal. Life cycle assessment results showed significant reduction of environmental impact for the scenario of CLT cutting re-processing.