Reaction between maleic anhydride (MA) and wood specimens was carried out in a vapor phase reaction system. Reaction conditions such as the ratio of supplied MA to wood, initial moisture content, and reaction temperature were optimized. The MA supplied to the reaction system was effectively absorbed by the wood, and a satisfactorily high dimensional stability was achieved even at a low MA/wood ratio. The dimensional stability increased with rising initial moisture content. When the reaction was conducted at an elevated temperature (180°C), high dimensional stability was attained without remarkable weight increase and bulking. The mechanism of dimensional stabilization was discussed on the basis of the dimensional changes at high humidity and during repeated water soaking and drying. It was shown that the dimensional stabilization arises mainly from a decrease of hygroscopicity. When the reaction was conducted at 180°C, the formation of cross-links in the cell wall was apparent. Following the MA treatment, the antifungal property was remarkably enhanced and met the Japanese Industrial Standard K1571. Therefore, MA treatment in the vapor phase is an effective method to attain antifungal properties as well as high dimensional stability with a small amount of nontoxic reagent.