The potential of producing eco-friendly, formaldehyde-free, high-density fiberboard (HDF) panels from hardwood fibers bonded with urea-formaldehyde (UF) resin and a novel ammonium lignosulfonate (ALS) is investigated in this paper. HDF panels were fabricated in the laboratory by applying a very low UF gluing factor (3%) and ALS content varying from 6% to 10% (based on the dry fibers). The physical and mechanical properties of the fiberboards, such as water absorption (WA), thickness swelling (TS), modulus of elasticity (MOE), bending strength (MOR), internal bond strength (IB), as well as formaldehyde content, were determined in accordance with the corresponding European standards. Overall, the HDF panels exhibited very satisfactory physical and mechanical properties, fully complying with the standard requirements of HDF for use in load-bearing applications in humid conditions. Markedly, the formaldehyde content of the laboratory fabricated panels was extremely low, ranging between 0.7–1.0 mg/100 g, which is, in fact, equivalent to the formaldehyde release of natural wood.