The thin-veneer strip technique was applied to investigate the modifying effects of 1,3-dimethylol-4,5-dihydroxyethyleneurea (DMDHEU) on the tensile strength of wood. Pinewood veneers treated with solutions of DMDHEU alone and in combination with magnesium chloride (MgCl₂) as a catalyst showed considerable strength losses of up to 50% in zero-span and up to 70% in finite-span testing modes. The higher strength losses in the latter case are due to hemicellulose degradation, which cannot be assessed in zero-span testing. Strength loss observed after treatment with DMDHEU and MgCl₂ was approximately as high as the sum of the strength losses determined after individual treatments with MgCl₂ or DMDHEU. Micrographs of veneers after finite-span testing revealed that catalysed DMDHEU treatment changed the predominant failure mode from interfibre fracture (in controls) to intrafibre fracture. The mechanism of strength loss resulting from treatment with DMDHEU is discussed.