The reaction of wood with maleic anhydride (MA) and sodium hypophosphite (SHP) has been identified as a viable modification method, with macroscopical properties indicating formation of cross-linking to explain the results. However, the chemical reaction between wood and the modification reagents has not been studied yet. To resolve this, the reaction was studied with solid-state 13C cross-polarization magic-angle-spinning (CP-MAS) and 31P MAS nuclear magnetic resonance (NMR) and X-ray photoelectron spectroscopy (XPS) to reveal the formation of bonds between wood components, MA and SHP during the treatments to explain the formation of cross-linking and the possible fixation of phosphorus in wood. XPS, solid state 13C and 31P MAS NMR revealed the maleation of wood in the absence of SHP, whilst its presence led to forming a succinic adduct observed through the C-P bond formation, as evidenced by the loss of the maleate C=C bonds at around 130 ppm and the upfield shift of the peak at 165–175 ppm, which was also significantly smoothed, as well as the increase in a peak at 26 ppm due to the reaction between the maleate group and SHP; however, the C-P-C bond could not be unambiguously rationalized from the obtained data. On the other hand, a resonance line at 16 ppm in 31P MAS NMR and the peaks in the XPS P 2p spectrum suggested the formation of a cross-linked structure at low concentrations of SHP, which was more likely to be phosphonate (C-P-O) than organophosphinic acid (C-P-C). The results herein provide a greater fundamental understanding of the mechanisms involved in the reaction of wood, MA and SHP, providing further scope for improved treatment systems in the future.