Wood sandwich panels are widely utilized in residential, commercial, and industrial settings due to their excellent thermal insulation characteristics, ease of installation, and high strength-to-weight ratio. This review provides an overview on experimental outcomes demonstrating the structural integrity and versatility of wood sandwich panels. It highlights recent advancements in meeting payload requirements and their effectiveness in reducing costs and weights for prefabricated houses. The review focuses on structural applications and material efficiency, showcasing their roles in lightweight, durable constructions for retrofitting and new projects. The potential of novel, sustainable materials in construction is explored, addressing current challenges and emphasizing the diverse applications and environmental benefits of wood-based sandwich panels, underscoring their importance in advancing energy-efficient and sustainable construction.