Pakistan is a farming and agricultural country facing energy issues from many years due to an increase in population and lack of technological development. Biomass is usually considered a waste. It is a major renewable energy source that is abundantly present in Pakistan. The wood residue is one of the potential biomasses to be used for energy purposes. Wood residue densification is considered a source of energy in this article. The effect of different pretreatments and binders (natural and synthetic) concentrations (5%, 10%, and 15%) on the densification of wood residue are analyzed. In addition to this, densified biomass pellets are characterized by physical, mechanical, thermal, and structural properties. The results indicated that densified pellets with 5% natural binder (rice binder) are found to be better in physical, mechanical, and thermal properties (IRI = 316, HV = 5396.3 Cal/g). The durability of the pellets with binder concentration is found to be linked with the bonding characteristics. It shows insights into the use of different biomass materials for energy generation to fulfill the demands of increasing commercialization and population. It indicates future prospects for better access to energy, reliable quality of air, and security of energy simultaneously while avoiding the harmful effects of climate change.