Specifications of wood adhesives must be in correlation with the requirements for the corresponding wood products, for which they will be used. Formaldehyde emission of wood products bonded with urea-formaldehyde resin based adhesives is strictly regulated by standards and there is a compromise is between formaldehyde emission and performance, such as strength, or water resistance. Since values of formaldehyde emission depend on the test method used, in Europe urea-formaldehyde resins for adhesives may generally be classified according to HCHO emission in the particleboard rating of Emission 0 to Emission I class (E-0 to E-1). According to DIN EN 120, particleboard quality E1 emits <6.5 mg/100 g dry article determined with the perforator method. Although a great number of factors effect the formaldehyde emission of the cured products, such as the hardener system, the type of wood etc., the emission of formaldehyde is in strict correlation with the free formaldehyde content of the resin before the curing process. E1 emission class can be achieved, if the free formaldehyde content of the resin is lower than 0.2% by mass. Urea-formaldehyde resins containing. higher than 0.5% free formaldehyde by mass exceed emission class E2, and are not accepted. Since the free formaldehyde content of the urea-formaldehyde resin effects the emission of formaldehyde in the cured product, low formaldehyde content must be ensured during resin synthesis. This can be achieved by properly selecting synthesis conditions as well as raw materials. The quality of raw materials is an essential and determining factor for the synthesis of urea formaldehyde resins. The principal changes which may take place in the formaldehyde solution on storage are the polymerization and precipitation of the polymer, Cannizzaro reaction, methylal formation, oxydation to formic acid, condensation to hydroxyaldehydes and sugars. Any of these reactions are detrimental to product quality. The state of formaldehyde is also an essential factor, since the reaction of poly(methylene glycol)s with urea leads to methylene ether linkages resulting in emission of formaldehyde during storage and later on during the process of curing. Hydrolysis, isomerisation and decomposition of urea may take place simultaneously during improper storage conditions, such as high humidity, high temperatures, industrial atmosphere. The side products formed affect the reaction with formaldehyde during the synthesis resulting in high free formaldehyde content of urea-formaldehyde resins. The relation between synthesis conditions, free formaldehyde content and performance of urea-formaldehyde resins are discussed in detail.