This research was carried out to investigate the effect of paper sludge addition on formaldehyde emission, and physical and mechanical properties of UF-particleboard. In order to investigate the effect of paper sludge addition to resin, particleboards were bonded with urea-formaldehyde resins containing 5, 10, 15% paper sludge powders of three types(A Type: -200 mesh, B Type: -100~+200 mesh. C Type: -50~+100 mesh), based on weight of resin solid. Also the effect of paper sludge addition to furnish was studied from particleboards fabricated with ratios of sludge to particle of 5:95, 10:90, 15:85 based on oven-dry weight. Tests were conducted on the manufactured particleboards to determine formaldehyde emission, bending properties, internal bond strength and thickness swelling. The obtained results were summarized as follows: The addition of paper sludge powder to resin yielded a higher pH of cured resin. Formaldehyde emission decreased with the increase of paper sludge powder addition to resin and paper sludge composition ratio to furnish. Particleboard bonded with urea-formaldehyde resin containing paper sludge powder and particleboard mixed with paper sludge have similar bending properties(MOR, MOE) and thickness swelling compared with control particleboard. Internal bond strength of particleboards treated with paper sludge were lower than that of control particleboard. The use of paper sludge as scavenger was achieved reduction of formaldehyde emission without depression of physical and mechanical properties of particleboard. Also the use of paper sludge was able to concluded that there is possibility of partial substitution of wood particle materials.