A nanoengineered canola protein adhesive (CPA) with improved adhesion and water resistance was previously developed by chemically modifying canola protein with ammonium persulfate followed by exfoliating graphite oxide nanoparticles. The objectives of this research were to prepare randomly oriented strand board (ROSB) composites using nanoengineered canola protein adhesive at pilot scale and to characterize the adhesive and mechanical properties of ROSB panels. Six groups of ROSB panels were produced by replacing commercial liquid phenol formaldehyde (LPF) with CPA at levels of 0%, 20%, 40%, 60%, 80%, and 100%. The mechanical and water resistance properties were tested according to ASTM D1037-12 and CSA O437.0-93 standard specifications. The mechanical performances, bond durability, and water resistance were not affected by CPA addition up to a level of 40%, compared to commercial LPF adhesives. Mechanical performance of all ROSB panels prepared in this study exceeded the acceptable minimum standards specified by CSA O437.0-93 standards. Canola-based adhesive can be used in commercial ROSB production, either as 100% resin for interior application or up to 40% replacement of LPF for exterior application.