The effect of alkyl ketene dimer (AKD) on plywood properties was studied. AKD is widely used in the paper industry as a sizing agent and can esterify wood cell wall components. Two types of veneers obtained from alder (Alnus glutinosa subsp. barbata (C. A. Mey) Yalt.) and beech (Fagus orientalis L.) wood logs were used. Two different treatment processes and two different concentrations (1% and 3%) of AKD were tested. The first method was AKD-dispersion, which was mixed with glue and sprayed onto veneers. The second method was dipping veneers into the AKD solutions (1% and 3%) for 25 min. Water uptake after 2 h, 24 h, and 48 h was reduced by the AKD treatment. Plywood produced from AKD impregnated veneers showed the lowest thickness swelling versus untreated plywood and plywood produced from AKD blended in glue. The AKD treatment generally reduced the mechanical properties of the plywood. However, AKD treatment considerably improved the biological resistance against brown rot fungi (Coniophera puteana BAM Ebw. 15) and white rot fungi (Trametes versicolor CTB 863A). Increased methyl/methylene and carbonyl groups of the alkyl chain were determined in the Fourier transform infrared (FTIR) spectra of specimens subjected to the AKD-dispersion method.