This study investigated the feasibility of an environmentally friendly incense consisting of a soy-based adhesive and miscellaneous wood powder (MWP). Key properties, such as water absorption, burning speed, density, and tensile strength, were examined. The suitable adhesive usage amount for the preparation of incense was 31.8%. When the soy-based adhesive contained 3% polyvinyl alcohol (PVOH), the water absorption, burning speed, density, and tensile strength of the incense were 24.6%, 13.93%, 0.713 g/cm3, and 1.01 MPa, respectively. Incense made of soy-based adhesive with PVOH displayed a higher tensile strength and decreased moisture resistance. The denser structure and even distribution of the MWP was observed via scanning electron microscopy of the incense with soy-based adhesive modified by 3% PVOH. When paraffin wax was added with the MWP, the incense had a higher moisture resistance, but the effects on the tensile strength were negligible. A combination of PVOH-modified soy-based adhesive, paraffin wax, and MWP was found to be suitable for preparing an environmentally friendly incense.