Forest residues generated from logging operations, forest maintenance, and wood-processing activities represent an increasingly important secondary biomass resource for sustainable material engineering. The heterogene-ous composition of these residues, together with their high lignocellulosic content, creates significant opportunities for their integration into wood-based composites and bio-derived adhesive systems. However, variability in species, morphology, moisture sensitivity, and chemical composition still limits their large-scale and standardized industrial utilization. This review investigates the valorization pathways of forest management residues within engineered wood-based material systems, with particular emphasis on wood–plastic composites, fiberboards, veneer-based products, and bio-adhesives derived from lignin and tannin fractions. The reviewed studies were identified through a structured survey of recent scientific literature focusing on the processing, classification, physicochemical characteristics, and engineering applications of forest biomass residues. Different utilization strategies were examined according to the geometrical form of the biomass, including fibers, particles, powders, and chemically extracted constituents used for adhesive formulation. The reviewed literature showed that forest residues were successfully incorporated into thermoplastic and thermosetting composite systems, where they contributed to stiffness enhancement, material lightweighting, and partial substitution of petroleum-derived constituents. Lignin- and tannin-based bio-adhesives also demonstrated promising potential for reducing formaldehyde dependence in wood panel manufacturing, although challenges related to reactivity, water resistance, and compositional variability remained significant. The findings further indicated that hybrid biomass systems, adhesive-free densified boards, and integrated biorefinery approaches have progressively expanded the technological possibilities for circular biomass utilization. The study demonstrates that forest residues can serve as multifunctional feedstocks for sustainable wood-based engineering materials when supported by appropriate material selection, traceability, and process integration strategies. The review also provides critical insights into the current limitations, scalability challenges, and future research directions associated with the transition toward low-emission and circular lignocellulosic material systems.