Cross-laminated timber (CLT) panels are commonly used in mass-timber multistorey constructions due to their prefabrication, construction flexibility, environmental credentials and weight-to-strength ratio advantages compared to competing building materials. However, the long-term durability and service life of these mass timber panels require further understanding of their performance when exposed to free water. Wetting and drying trials were conducted by exposing Radiata pine (Pinus radiata) CLT sections to either free water (pooling on a single surface) or submerged water (all directions exposed) saturation, followed by either ambient or fan drying. The panels exposed to water pooling only reached MC above the FSP up to 40 mm of the panel depth. For submerged panels, the MC reached values above the fibre saturation point (FSP) at depths of 30 to 40 mm penetration on both panel faces. When comparing the ambient and fan-drying panel sections over the same time period, a less uniform MC profile was observed for the ambient drying, whereas the fan-dried panels fell below the FSP faster and with a more consistent MC profile. A complementary study was conducted on a standalone 3.0 × 3.0 m CLT room, where the room was wetted during a simulated pipe burst event. The moisture monitoring of wall and floor panels during fan drying of the room showed that an MC reduction from an excess of 40% to below 20% could be reached in less than 96 h for the panels’ surface; however, the middle sections of the panels dried slower than the surface sections. The CLT structure fan drying required a longer drying time than the CLT sections tested due to the closed sections (overlaps and connected faces) and a lower rate of airflow. The study of drying CLT sections highlighted the product reaching and maintaining MC higher than FSP points and the need for further drying applied to minimise long-term decay development. Further study is recommended to investigate the effects of closed sections (connected faces) and the duration of drying needed for semi-finished and finished buildings.