In near future about 500,000 hectares of Japanese larch and pitch pine need thinning to improve crop-tree spacing and reasonable species composition in Korea. Although thinned trees show very little high quality wood, in fact, all the sawed products are suitable for construction and farming materials. Studies on the utilization of thinned small-diameter trees have been implemented in order to increase lumber yield and display the skeleton of farm buildings. The results obtained in this study were summarized as follows: 1. According to Korean Conifers Log Grading System, log grade 3 was 87.4 percent in Japanese larch bolts and 95.8 percent in pitch pine bolts from thinned trees. The ability to identify defects was essential for grading logs. 2. Cutting diagrams of sawing were developed for 1-sided sawing, 2-sided sawing and 3-sided sawing by small end diameter class of bolt and cutting sizes also were found to use effectively lumber with wane. 3. Lumber recovery of Pitch pine was a little higher than that of Japanese larch. The maximum lumber yields of pitch pine by sawing patterns were 87.2 percent for 1-sided sawing, 80.8 percent for 2-sided sawing an 64.1 percent for 3-sided sawing, up yield compared with 58.1 percent for 4-sided sawing. The lumber yield of 1, 2 and 3-sided sawing significantly was higher value than that of 4-sided sawing. 4. Lumber was inspected and graded. Lumber quality of diameter class 12cm was a little better than that of diameter class 8cm, but 90 percent of lumber in diameter c1ass 16cm fell into grade 3. The lumber grade was classified by Korean standard grades of confiers lumber. 5. Lumber from 1, 2 and 3-sided sawing was used to build the skeleton of a farm house ($53m^2$) and greenhouse ($60m^2$) in order to display more efficient use of small diameter trees from thinning 6. Total volume of timber for building a farm house was $8.1m^3$ of imported timber. Timber of $7m^3$, 70 percent of total volume would be substituted imported timber for domestic timber.