The aim of this study was to investigate the effect of compounds, either spread on particles or added to the resin, which contain various numbers of acetoacetyl groups in terms of their effect on formaldehyde content and the physical and mechanical properties of particleboards glued with the urea-formaldehyde (UF) resin. The produced particleboards were subjected to the following European Standards standard tests: internal bond, modulus of rupture, modulus of elasticity, swelling in thickness after 24 h of soaking in water, and the content of formaldehyde. Results of the study make it possible to state that both the spreading of the acrylic emulsions containing acetoacetyl groups on the particles before gluing and the adding of them to the UF resin result in a decrease of formaldehyde content and improvement of physical and mechanical properties of particleboards. Boards with better properties were obtained in the case when emulsions containing acetoacetyl groups were spread directly on the surface of particles. (C) 2003 Wiley Periodicals, Inc.