Mytilaria laosensis, a common fast-growing tree species in southern China, boasts excellent growth speed and attractive color and texture. However, due to its short growth cycle and high proportion of juvenile wood, it typically exhibits poor dimensional stability and low strength, which significantly limits its practical applications. This study uses vacuum impregnation to modify M. laosensis wood with polyethylene glycol (PEG), focusing on the effects and mechanisms of PEG with different molecular weights on wood properties. The results indicate that PEG enters the wood cell walls through capillary action and diffusion, forming hydrogen bonds with the free hydroxyl groups on cellulose and hemicellulose, which keeps the cell walls swollen and enhances dimensional stability. Post modification, the dimensional stability of M. laosensis wood improved, with an anti-swelling efficiency ranging from 61.43% to 71.22%, showing an initial increase followed by a decrease with increasing PEG molecular weight. The optimal PEG molecular weight for anti-swelling efficiency was 1500 Da, achieving 71.22%. The flexural modulus of elasticity and flexural strength of the treated wood also first decreased and then increased with increasing PEG molecular weight. Among them, the PEG1000-treated material showed the best performance, with the flexural modulus of elasticity increased by about 29% and the flexural strength increased by about 5% compared to untreated wood. Additionally, PEG, having a higher pyrolysis temperature than wood, raised the initial pyrolysis temperature and maximum pyrolysis rate temperature of M. laosensis wood, thus improving its thermal stability. These findings provide scientific evidence and technical support for the efficient utilization and industrialization of M. laosensis wood, promoting its widespread application and industrial development.