Technical Abstract: The Eucalyptus, Eucalyptus cinerea, has the potential to be used as a salt-tolerant crop utilizing saline subsurface drainage water in arid land-irrigated agriculture. In this research, saline eucalyptus was used to manufacture medium-density particleboard in order to develop a value-added application of this saline wood. This study investigated the effects of particle sizes, adhesives, bark content (BC), resin content, hot water treatment and wood species (non-saline and saline) on the mechanical and water resistance properties of the eucalyptus-derived medium-density particleboards. The measured mechanical properties included tensile strength (TS), modulus of rupture (MOR), modulus of elasticity and internal bond strength of the finished particleboards. Water absorption and thickness swelling were measured to evaluate the water resistance properties. Except MOR, particleboard bonded with polymeric methane diphenyl diisocyanate (PMDI) resin had higher qualities than those bonded with urea formaldehyde (UF). The particleboard made with medium size (20 to 40 mesh) particles gave the best qualities except TS, than that of the smaller size (40 to 60 mesh) and the larger size (10 to 20 mesh) particles. When the content of UF resin increased from 7% to 16%, the qualities of the particleboard were improved. When BC increased from 0% to 15.4%, the mechanical properties were deteriorated, but the water resistance was improved. The particleboard made from hot water-treated wood particles had better qualities compared with particleboard made from untreated particles. Saline eucalyptus particleboard also showed much better qualities than the non-saline particleboard. It was concluded that saline eucalyptus was an appropriate material for manufacturing particleboards.