The reaction between polyols and diisocyanates forms polyurethane (PU) adhesives. However, these materials are derived from petroleum-based chemicals, whose availability is declining. As an environmentally friendly, renewable, and formaldehyde-free alternative, tannins offer a promising solution. This study aimed to characterize tannin-based polyurethane (TPU) adhesives modified with bio-polyol, analyze their performance, and determine optimal tannin extract formulation for use as a plywood adhesive, as the first step toward developing eco-friendly TPU adhesives. TPU adhesives were made using modified polyvinyl alcohol (PVOH) and tannins at concentration levels of 0%, 10%, 20%, 30%, 40%, and 50%. The analysis is carried out on raw materials, adhesives, and plywood. The results showed that adding tannin extracts had a significant effect on viscosity, tannin solids content, density, delamination, and dry and wet adhesion strength, but not for moisture content. Functional group analysis (FTIR) confirmed that both liquid and solid TPU adhesives contained urethane, hydroxyl, and isocyanate functional groups. The lowest DMA loss modulus was observed in TPU with tannin 20%. Additionally, the highest adhesion strength was achieved with 20% TPU, which correlated with increased wood failure. Based on these findings, PVOH/tannin 20% was considered an effective formula for TPU adhesives.