This study investigates the fractional condensation of multicomponent vapors obtained from the pyrolysis of sawdust in a fluidized bed reactor at 500 °C, and the resulting pyrolytic vapors which were subjected to fractional condensation using a temperature-controlled system consisting of four condensers. The objective was to assess the effectiveness of this fractional condensation system in separating complex components and enhancing bio-oil properties. The characterization of the bio-oil included evaluating pH value, total acid number (TAN), heating value, and chemical compositions. The findings revealed that the last two condensers effectively collected most of small molecular chemicals such as acetic acid, ketones, esters, alcohols, aldehydes, and water. Notably, Benzenes (benzene, toluene, and ethylbenzene) and certain types of phenols (creosol and Phenol, 2,3-dimethyl-) tended to condense in SBO 1, as their temperatures were higher than their dew points. SBO 1 exhibited the highest calorific value of 29.42 MJ/kg, whereas SBO 2 displayed the lowest acidity (1.19 mol/L) and a higher calorific value (11.38 MJ/kg) compared to SBO 3 and SBO 4. Additionally, a life cycle assessment (LCA) demonstrated that the fractional condensation method possesses economic and environmental advantages. This approach offers a promising technique for effectively separating complex components in bio-oil derived from sawdust pyrolysis, leading to improved product properties and reduced environmental impact. Consequently, these findings contribute to the advancement of sustainable biomass conversion processes and underscore the potential for optimizing the production of valuable bio-based products.