This research has been executed for maximization of lumber yield and more efficient use of small diameter logs. Sample logs from thinnings carne from densed artificial stands at the Kwangnung Experimental Forests situated in the central region of Korean peninsula. Species of sample logs were obtained to execute sawing and strength test for larch, and lumber strength test in full size for pitch pine and Korean pine. A survey on sawmills consuming domestic logs was carried out to know sawmill production, costs and utilization structure of lumber as a guide to business analysis. Results showed that sawing pattern from small logs less than 15cm in diameter was necessary to cut 9cm by 9cm square per one log in order to obtain high lumber recovery and provide for wide market needs. The total lumber yield of squares plus side boards was 56 percent to 58 percent from small logs and the yield for log sweep in 30 percent decreased by 24.5 percent in sawing production, compared to yield for straight logs. In sawing efficiency, production of lumber by twin band saw could be improved 238 percent higher than lumber of the same species produced by conventional sawmilling methods, and sawing accuracy with twin band saw was much higher at the lumber production than band saw. Lumber from the small larch logs has shown 70 knots per $m^2$ on its faces and also lumber showed lots of face checkings by air drying on the yard, compared to other species. MOR in bending of lumber in full size from small logs of larch was found ranging from 380kg/$cm^2$ to 460kg/$cm^2$, resulting in 40 percent less than the strength from clear small specimens. In lumber containing knots, cross grain, etc, longitudinal stress wave speed was delayed about 48 percent by defects in lumber from both larch and pitch pine logs. The surveyed sample sawmills consumed the domestic logs at the rate of 54 percent to 84 percent in the total timber consumption, showing high consumption at mills located in the mountains.