The amount of wood waste from furniture production is increasing. Wood waste is diverse and ranges from wood-splitting residues to leftovers from furniture production. Wood waste occurs in companies, household-based industries, and other forms of business where waste accumulates; therefore, an environmental and ethical policy is needed. The aim of this study was to identify products created using wood waste and describe government regulations related to environmental policies. We analyzed the management of wood waste for use as a new product so that it is useful, does not become waste, and complies with policies related to environmental ethics. A case study design using qualitative methods was used. This research focused on managing wood waste in Jepara's furniture and crafts industry for the 2010-2021 period, using 23 sources from primary, secondary, and other supporting documents. Data were collected through observation or gathering information related to research needs, conducting closed-door interviews with research sources, documenting data to strengthen research findings, and using online questionnaires to corroborate information related to wood waste management. This article presents wood waste products designed with optimized environmental ethics and awareness of environmental laws in wood-based industries.