PurposeThis study analyses the challenges in implementing lean manufacturing (LM) in the wood and furniture industry. In order to facilitate the smooth implementation of LM practices in this industry, the challenges in terms of its deployment need to be analysed and observed.Design/methodology/approachRealizing this importance, this study proposes a model, using PLS-SEM, which focusses on dealing with the challenges faced in the implementation of lean in the wood and furniture industry. The model consists of ten challenges that were determined based on a survey involving 46 SMEs companies in Malaysia.FindingsThe findings revealed that the implementation of LM is significantly affected by three main issues, namely: knowledge, resources and culture and human attitude. Furthermore, the analyses also highlighted four dominant challenges which are related to culture and human attitude issues – lack of employee commitment, lack of senior management's interest and support, difficult to implement, and LM is viewed as “current trend”. Overall, the ability to deal with the challenges involving factors of knowledge and culture and human attitude determines the success of LM implementation, especially in companies that have limited resources.Practical implicationsThis study would help wood and furniture SMEs, government agencies, professional bodies and academics to better understand the challenges when implementing LM practices.Originality/valueOverall, this study aims at investigating the relationships between the three challenges to better promote LM in the scope under study. Therefore, several activities were proposed to overcome the abovementioned challenges and subsequently contribute to the current body of knowledge.