Abstract: In order to compare the effect of peeling with incisor bar and with smooth roller bar on veneer quality, a mini-lathe in Forintek’s laboratory was significantly upgraded by installing digit control system and two kinds of bars. Forty-five spruce blocks were peeled with incisor bar and smooth roller bar respectively so as to investigate the effect of three controllable variables, pitch angle (PA), vertical gap (VG), and horizontal gap (HG), with three level configurations and duplication twice for each controllable peeling parameters setting, on veneer quality while other parameters were fixed. The effect of bar type on veneer curl-up and thickness variation was compared. The test results demonstrated that the peeling with incisor bar could reduce green veneer curl-up ratio over 60% compared with the smooth roller bar, and generate more even veneer thickness and less veneer thickness variation than the smooth roller bar. The optimum lathe settings for incisor bar and for smooth roller bar were quite different, which indicate that the lathe settings have to be adjusted after changing bar from one to another. The optimum lathe settings for incisor bar were PA 90.5°, VG 9.84mm, and HG 2.79mm. In contrast, the optimum lathe settings for smooth roller bar were PA 88.5°, VG 11.75mm, and HG 2.54mm in this experiment.