In this study feasibility of using of mixture of bagasse and industrial wood particles for producing single and three layer particleboard . The aim of this study was to consider bagasse as partially substitute particleboard industry raw material. Variables were type of board at two levels (single and three layer), percentage of added bagasse to industrial particles at 4 levels (20%,30%, 40% and 50%) , and press temp. at two levels (165OC and 180 OC ). In producing three layer particleboard wood and bagasse particles were separated and placed in different layers so that bagasse particles were located in the face layers and wood particles were placed in the core of board. But in one layer particleboard bagasse and wood particles were used in the form of mixture. Effect of variables on physical and mechanical properties of particleboard were determined. Results showed that in three layer particleboard physical and mechanical properties were better than single layer particleboard. Increasing press temperature caused improvement in particleboard properties in most cases due to intermeshing and increasing softening wood and bagasse particles. The optimum treatment in this study was found to be adding 50% bagasse and press temperature of 180 OC.