Lignin-based wood adhesives prepared without formaldehyde substituted by non-volatile non-toxic aldehyde, namely glyoxal, were prepared and tested for application to wood panels such as particleboard. The adhesives yielded good IB strength results of the panels, enough to comfortably pass relevant international standard specifications for exterior-grade panels. The adhesives also showed sufficient reactivity to yield panels in press times comparable to those of formaldehyde-based commercial adhesives.