A high-efficiency fire retardant composition was prepared with dicyandiamide, phosphoric acid, boric acid, borax, urea and magnesium sulfate and it was used to process veneers which were then to prepare the plywood. Meanwhile, heat release and smoke release from combustion of plywood were tested by a cone calorimeter, including heat release rate, mass loss rate, CO yield, CO2 yield and oxygen consumption. Results showed that the plywood with this fire retardant treatment had the better flame-retardant performance and smoke suppression effect as well as the stronger char-forming capability compared to plywood without fire retardant treatment. The average heat release rate, total heat release, average effective heat of combustion, total smoke release, CO yield and oxygen consumption of the plywood with fire retardant treatment were decreased by 63.72%, 91.94%, 53.70%, 76.81%, 84.99% and 91.86%, respectively. Moreover, the fire growth index of plywood treated by fire retardant was relatively low (3.454 kW·m-2·s-1) and it took longer time to reach the peak heat release rate, accompanied with slow fire spreading. The fire performance index was relatively high (0.136 s·m2·kW-1) and it took longer time to be ignited, thus leaving a long time for escaping at fire accidents. The fire hazard of plywood with fire retardant treatment was low, and its safety level was high.