A novel type of flame-retardant decorated plywood (FDP) was designed and prepared based on one kind of intumescent flame-retardant adhesive. The flame-retardant adhesive was composed of the phosphorous-nitrogen flame retardant and melamine urea formaldehyde (MUF) resin. An adhesive was placed between the plywood substrate and the decorative veneer. The shear strength of the FDP satisfied the Class II (GB/T 9846) when the ratio of flame-retardant and MUF was less than 0.65. The thermal stability of the flame-retardant adhesive was measured by thermogravimetric analysis (TGA). The intumescent behaviors of adhesives were systematically investigated. The morphological and chemical structures of the intumescent char of the flame-retardant adhesive were characterized by the scanning electron microscopy (SEM) and Fourier transform infrared spectra (FTIR), respectively. The fire performance of FDP was assessed by the cone calorimeter and the single burning item test. The FDP exhibited the most effective barrier when the optimized ratio of ammonium polyphosphate (APP) and pentaerythritol (PER) in the adhesive is 3. The flame-retardant class of FDP could be up to class B1(B) according to GB/T 8624.