Heavy oil was co-processed with wood biomass by using supercritical m-xylene and n-dodecane. The effects of the solvent, temperature, hydrogen, and catalyst on vacuum residue (VR) upgrading were evaluated using residue conversion, coke formation, and product distribution as performance parameters. VR was subjected to co-processing with microcrystalline cellulose (cellulose) or oil palm empty fruit bunch fiber (EFB), and the parameters were compared with those obtained from VR upgrading. Co-processing of VR/cellulose using a catalyst and hydrogen led to higher conversion (72.6 wt%) than co-processing of VR/EFB at 400 oC and the highest yield of light product (65.7 wt%). Using the Fe3O4 catalyst with H2 for co-processing positively influenced generation of the light product fraction. VR upgrading and co-processing using supercritical solvents could eliminate a certain amount of sulfur compounds from heavy oil. Co-processing of wood biomass with petroleum feedstocks in existing oil refineries can reduce the capital costs of bulk treatment.