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Performance evaluations of wood and other lignocellulosic-based composites involve complex scenarios of several factors such as material heterogeneity and geometry that often leads to complicated, expensive, and time-consuming experimental procedures. Hence, the application of computational modeling and simulation is desirable to mitigate these biocomposites’ performance testing challenges. This review paper, therefore, presents an outlook on the finite element method (FEM) application in probing performance characteristics of wood and solid wood-based composites as well as reconstituted wood and other lignocellulosic-based composites. Notwithstanding the complex nature of wood and other lignocellulosic biomass, the feasibility of FEM application in characterizing their performances has been favorably demonstrated. Going forward, broader applications of FEM combined with the design of experiments would further establish developing protocols. More exploration of FEM-based parametric and optimization studies would facilitate comprehensive, cost-efficient, and swift biocomposites design and performance optimization processes thereby enhancing their acceptance and implementation in target applications.