This paper develops a process for the preparation of modified wood with low friction and low wear for tribological applications such as self-lubricating bearings. Two types of wood, beech (Fagus sylvatica) and robinia (Robinia pseudoacacia), have been studied and the results compared with naturally lubricated native lignum vitae. The process developed consists of plasticisation followed by compression in a mould, thermal modification and subsequent wax impregnation. Plasticisation was carried out by conditioning the samples to a low equilibrium moisture content of 10%, followed by heating to a sample core temperature of 80 °C. This process protects the internal wood structure from mechanical damage during densification. After plasticisation, the wood was compressed in a press mould. A low springback effect (SBE), resulting in compression of up to 40%, was achieved by unloading the mould without opening it. This step optimises compressive strength and hardness. Subsequent heat treatment reduces thickness swelling by up to 85%. Finally, a wax impregnation was applied to reduce friction. Sliding wear tests on modified beech wood have shown that the lowest wear occurs in the cross-sectional orientation (load perpendicular to the fibre ends; rxt orientation). Sliding friction studies using a steel ball on a ball-on-disc tribometer showed that compressed and thermally modified samples impregnated with rapeseed wax or beeswax exhibited coefficients of friction in a range of 0.08 to 0.09. These values are almost four times lower than those of plain compressed wood and even lower than those of lignum vitae, which was used for plain bearings decades ago. This study clearly demonstrates the high potential of compressed, thermally modified and wax-impregnated wood.