Wood construction waste circularity presents enormous potential to significantly de-crease total greenhouse gas (GHG) emissions in the European Union (EU). Latvia could become a frontrunner due to its historic relationship with forestry, wood construction practises and unused potential of the innovative application of wood. This research examines what the potential of “circular wood” in Latvia is, how ready the Latvian wood house construction sector is to engage in a circular economy and wood waste circularity and whether the legal framework is ready to support wood waste management in the country. This study presents a combined approach for systematic wood construction product circularity assessment that includes a review of existing EU and Latvian frameworks for construction and demolition waste (CDW) management and wood construction, a general analysis of wood waste recycling systems and technologies, a quantitative data analysis of construction waste management in Latvia and qualitative data analysis of the Latvian wood house construction sector, and interviews with a focus group of Latvian wood industry representatives. The Latvian scope has allowed us to clarify the pattern methodology and impact points to be replicated, tested and measured further on a broader scale, in other countries, or throughout the whole EU. The main findings reveal a potential life cycle assessment (LCA) verifying the circularity of wood and limitations of wood construction waste circularity in Latvia in terms of wood house construction industry readiness and a legal framework as well as overall social prejudices for circular construction. Findings indicate an overall awareness and level of willingness to participate and engage in the circular construction models among Latvians; however, proactiveness and support (legal and financial) is expected from the government and municipalities. The recommendations point towards improvements in wood waste data management, the wood construction sector and the overall impact on sustainable development goals.