The aim of this research was to investigate the effect of polymeric 4, 4 diphenyl methane diisocyanate (pMDI) on the physical and mechanical properties of plywood panels bonded with an ionic liquid (IL)-treated lignin-urea-formaldehyde resin. Soda lignin modified by 1-ethyl-3-methylimidazolium acetate ([Emim][OAc]) IL was added to a urea formaldehyde (UF) resin during resin synthesis to prepare a lignin-urea-formaldehyde (LUF) resin. pMDI at various contents (2, 4, and 6% on resin solids) was then added to prepare a LUF resin. The thermal and physicochemical properties of the resins prepared as well as the water absorption, shear strength, and formaldehyde emission of the plywood panels bonded with them were measured according to standard methods. DSC analysis indicated that the addition of pMDI decreases the gel onset and curing temperatures of the LUF resin. According to the results obtained, the addition of pMDI significantly increased the viscosity and solid content and accelerated the gelation time of LUF resins. Based on the findings of this research, the addition of pMDI dramatically improves the performance of LUF resins as a new adhesive for wood-based panels. The LUF resins with isocyanate added yielded panels presenting lower formaldehyde emission and lower water absorption content when compared to those bonded with the control LUF resins. Greater dry and wet shear strength can be obtained by a small addition of pMDI to LUF resins.