Sodium hypophosphite (SHP) has been recognized as the most efficient catalyst in the esterification reaction of cellulosic fabrics with citric acid (CA), but both the high cost and the environmentally harmful property of SHP call for optimization of its application. In this study poplar wood (Populus adenopoda Maxim.) was treated with CA to various weight percent gains (WPGs) and the effect of SHP on the resulting properties of treated wood was investigated. Esterification with CA can occur also in the absence of SHP, as evidenced by the resistance to water leaching of CA. Wood treated with CA alone to 36% WPG exhibited 7% bulking, 50% anti-swelling efficiency, 30% reductions of the modulus of rupture, and 50% lower impact strength. Treatments with CA in the presence of SHP provided wood properties comparable to wood treated with CA alone. Thus the application of SHP can be questioned from the point of view of an economic production and environmental protection.