Limited by flammability, wood and wood-based materials face challenges in distinguishing themselves as structural materials or finishing materials. Once burning, they can produce toxic gases detrimental to humans and the environment. Therefore, it is critical to make clear whether fire-retardant wood construction materials are insusceptible to fire and not the sources of toxic gases. This study aimed to evaluate flame-retardant plywood from the aspects of flammability and the toxic gas and smoke generation during combustion. The flame-retardant plywood was manufactured by impregnating a flame-retardant resin in line with International Maritime Organization (IMO) standards. The research results indicate that seven out of the eight kinds of toxic gases listed by the IMO, other than CO, were not detected during the combustion of the flame-retardant plywood. While CO was detected, its quantities under three test conditions are below the corresponding thresholds. Therefore, unlike synthetic resin products, flame-retardant plywood is a promising finishing material that can reduce the damage from toxic gases in the event of a fire. In the smoke generation tests, the mass reduction rate of flame-retardant plywood increased from 13% to 18% and then to 20% as the test condition became more severe. Under the same circumstances, the average maximum specific optical density also followed an upward trend, whose values (75.70, 81.00, and 191.20), however, still met the IMO standard of below 200. This reflects that the flame-retardant plywood is competent as a finishing material. Further, flammability was evaluated, and the critical flux at extinguishment (CFE), total heat release (Qt), and peak heat release rate (Qp) were determined to be 49.5 kW/m2, 0.21 MJ, and 0.66 kW, respectively, which all did not reach the corresponding thresholds given by the IMO. To sum up, flame-retardant plywood has satisfactory flame-retardant performance and meets fire safety standards, showing the potential to be an attractive finishing material for building and construction.