The artificial afforestation of precious Phoebe bournei has been carried out in China. During the cultivation process, thinning wood will be produced. The properties of thinning wood might vary greatly with matured wood and require evaluation for better utilization. The objective of the present study aims to determine the wood structure, fiber morphology, and physical and mechanical properties of the Phoebe bournei thinning wood to help us understand the wood properties and improve its utility value. Three 14-year-old Phoebe bournei were cut from Jindong Forestry Farm of Hunan Province, China. The wood structure and fiber morphology were observed and analyzed with a light microscope and scanning electron microscope. The physical and mechanical properties were tested according to the Chinese national standards. The results showed as follows: (1) The Phoebe bournei thinning wood has a beautiful wood figure and fine texture, whereas the heartwood has not yet formed. ( 2) It is a diffuse-porous hardwood with small and less pores as well as fine wood rays. (3) The wood fiber is medium length and extremely thin wall thickness. (4) It is low in density and has excellent dimensionally stability. (5) The wood mechanical properties belong to the low to medium class and the comprehensive strength of wood belongs to the medium-strength class. It is concluded that Phoebe bournei thinning wood is suitable for wood carving, handicraft, high-end furniture, and decorative furniture parts.