Naturally durable wood species such as western juniper (Juniperus occidentalis) are a potential source of bio-based wood preservatives for the improvement of non-durable timber species. This research investigated the durability of southern yellow pine (Pinus sp.) and western juniper lumber or strandboard. Single layer panels were made with six different types of wood or wood treatments: southern yellow pine, mixed juniper sapwood and heartwood, sapwood, heartwood, sapwood strands impregnated with juniper oil prior to and after panel manufacturing. Panels were fabricated with 560 kg/m3 oven-dry density with 5% of PF resin and 0.5% of wax. Durability testing was performed with the brown rot fungi Gloeophyllum trabeum and Rhodonia placenta and the white rot fungus Trametes versicolor. Internal bond as a crucial parameter of OSB was measured. Tests revealed that juniper heartwood and juniper heartwood strandboards were highly decay resistant, and juniper oil pre- and post-impregnation strandboard manufacture imparted increased resistance to decay against one brown rot fungus, Gloeophyllum trabeum. Juniper strandboard manufactured from non-impregnated strands showed significantly higher internal bond than pine. These results suggest there is excellent potential for manufacturing highly decay-resistant OSB from juniper, especially from heartwood and that juniper oil can increase the durability of juniper sapwood strandboard.