Nowadays, plywood market is world-wide consumption and trend is toward not only local consumption This is due to huge demand for quality plywood required in construction industry. Generally, phenol formaldehyde resin commonly referred as a thermal based adhesive in plywood industry, it provides the strong structural bond and moisture resistance durability for various exterior and marine grades of plywood. When formaldehyde concentration in air exceeds 0.1 ppm level, individuals may encounter adverse health effects such as burning sensations in the eyes, nose, and throat coughing, wheezing, nausea and skin irritation. In 1980, laboratory studies elevated that exposure to formaldehyde could cause nasal cancer in rats. The International Agency for Research on Cancer (IARC) announced formaldehyde chemical as a human carcinogen. Therefore, this research work is aimed to develop a new green plywood, by the replacing the phenol- formaldehyde resins with a mixed epoxy, silicone polymer resin as a zero emission of formaldehyde in construction industry. Their chemical bonding properties are compared with urea formaldehyde based adhesive and phenol- formaldehyde resin. Modified adhesive formulation contributes better performance of veneer based plywood or particle board production without changing any properties during production process with improvement in overall properties. This new formulation of adhesive based on epoxy resin with silicone resin mix and applied for making green plywood construction building products. Further investigation also includes the moisture absorption characteristics, compression test, emission test, heat resistant capacity, and anti-termites, borer proof plywood