Abstract: The concept and the basic contents of data fusion were briefly introduced. After the applications in forest fire prevention, estimation of forest variables and updating forest inventory were analyzed, and the applications in wood non-destructive detection and precision application were prospected. The technology could inspect the wood and its products more precisely by fusing single-sensor technologies such as machine vision and X-ray. GIS, GPS, RS and other real-time sensors could be integrated to create the world of spatial-temporal variability based on nature biology and their environment recourses and establish precision forest system by decision support system (DSS) and variable rate technique (VRT).