Understanding the process of wood formation and its dynamics over the growing season is fundamental to interpret the isotopic signature of tree rings. Indeed, the isotopic signal recorded in wood does not only depend on the conditions influencing carbon, water, and nitrogen uptake in the leaves and roots, but also on how these elements are translocated to the stem and incorporated into the developing xylem. Depending on environmental conditions, tree developmental stage, and physiological status, wood formation dynamics can vary greatly and produce tree-ring structures carrying specific isotopic signatures. In this chapter, we present the physiological processes involved in wood formation, along with their relationships with anatomical, developmental, and environmental factors, to understand when and how photosynthetic assimilates are progressively incorporated into the forming xylem, creating the final isotopic signature of a tree ring. First, we review current knowledge on the structure and functions of wood. Then we describe the xylogenesis process (how and when the new xylem cells produced by the cambium develop through successive differentiation phases), and its relationships with physiological, developmental, and environmental factors. Finally, we explain the kinetics of xylemcell differentiation and show why the knowledge recently acquired in this field allows us to better understand the isotopic signals in tree rings.