The relevant literature is reviewed concerning eucalyptus wood collapse, with a focus on lumber drying technology. Potential future research is summarized regarding where potential future work may focus. Eucalyptus is often limited as a solid wood products material due to microstructural collapse and interior cracking that may occur during drying. To prevent the drying collapse, studies have focused on the mechanism of collapse, the morphological characteristics of collapse, the control of collapse, amongst other criteria. Because the surface tension of water results in wood cell collapse, the shape of collapsed cells should be recovered after the liquid tension disappears. Therefore, pretreating green timber (such as pre-heating, pre-steaming, microwave treatment, pre-freezing, or boiling) prior to drying results in the modification of wood cell tissue and inhibits the conditions for collapse. Thus, there is improved wood permeability, drying rate, shortened drying time, as well as reduced collapse during the drying process. In addition, applying process control in regards to a suitable drying schedule (especially the drying temperature), relative humidity, drying time, intermittent drying process, combined drying technology, etc., tends to reduce the amount of collapse and improve drying quality. Reconditioning, such as steaming during the drying process, can aid collapse recovery. Generally, reconditioning or other treatment can help recover 50% of the collapse.