This study investigated the morphology, electrochemical modification with respect to the wood fiber direction, and mechanical properties of wood modified by in situ polymerization with polyaniline (PANI). This polymerization formed a composite material with applications as an anti-static, electromagnetic, anti-corrosion, and heavy metal purifying materials. The polymer was found throughout the entire structure of the wood and was quantified within the wood cell wall and middle lamella by SEM-EDX. The presence of PANI affected the conductivity of the composite specimens, which was found to be higher in the fiber direction, indicating a more intact percolation pathway of connected PANI particles in this direction. The PANI modification resulted in a small reduction of the storage modulus, the maximum strength, and the ductility of the wood, with decreases in the properties of specimens conditioned in an environment above 66% relative humidity. The in situ-polymerized PANI strongly interacted with the lignin component of the veneers, according to the decrease in the lignin glass transition temperature (Tg) noted in DMA studies.