This review discusses the applications of laccase in the forest products industry. Laccases are versatile, phenol-oxidizing enzymes obtained from white-rot fungi and other natural sources; when acting on lignin, they can display both ligninolytic and polymerizing (cross-linking) abilities. The substrate range of laccase can be extended to cover both phenolic and non-phenolic compounds by means of laccase-mediator systems (LMS), which makes laccase suitable for, e.g., biobleaching of lignocellulosic pulps. As laccase/LMS can also help remove pitch, phenolic contaminants, and dyes from wood-based materials and water, laccase technology is applicable to virtually the entire production chain of paper products from pulping to recovery of secondary fibers and effluent treatment. Indeed, most of the published research and applications of laccase/LMS in the forest products industry relate to the pulp and paper sector, where particular emphasis has been placed on studying laccase/LMS for use in biobleaching and mill water treatment. Emerging research areas include the tailoring of lignocellulosic materials by laccase-assisted biografting of phenols and other compounds, and the use of laccase for adhesion enhancement in binderless wood boards. (c) 2008 Elsevier Inc. All rights reserved.