Cross-laminated timber (CLT) has become a popular engineered wood product, mainly prepared from imported wood in China. More extensive research is needed to improve the local production of cross-laminated timber with fast-growing coniferous wood species. Chinese fir (Cunninghamia lanceolata) and one component polyurethane (1C-PUR) adhesive were selected to prepare CLT under different process parameters. International standard methods, scanning electron microscopy (SEM), optical microscopy (LM), confocal laser scanning microscopy (CLSM), and nanoindentation (NI) were applied. The bonding performance and failure mechanism of Chinese fir CLT were investigated and clarified. The results showed that the optimal gluing parameters for preparing CLT from Chinese fir wood were 160 g/m2 of glue, 0.9 MPa of pressure, and 180 minutes of pressing time. Failure of CLT made from Chinese fir lumber was mainly due to the shear failure of the vertical layer board. Cracks often appeared in the earlywood cells near the boundary between earlywood and latewood. The impact of adhesive penetration on the mechanical properties of the wood cell wall showed that adhesive penetration increased the elastic modulus of the cell wall at earlywood and latewood cells.