A new approach to reinforce glulam timber beams has been developed by using compressed wood (CW) which is made of a lower grade wood through densification processes. In the reinforcing practice, compressed wood blocks are inserted into pre-cut holes on the top of glulam beams to produce pre-camber and to generate initial tensile and compressive stresses on the top and the bottom extreme fibre of the glulam beam. In order to optimize the size, the number and the location of CW blocks, 3-D finite element models have been developed. 3D non-linear finite element models have been developed to simulate the pre-camber of Glulam beams locally reinforced by compressed wood blocks. The models developed have also produced the initial tensile and compressive stresses at the top and bottom extreme fibres with building-up moisture-dependent swelling on the CW blocks. With the pre-camber and the initial stress state that cancel out proportions of working deflection and stresses.