Abstract: 【Objective】Understanding the agglomeration level, coagglomeration level, and evolution trend, and revealing the effects of industrial agglomeration and coagglomeration on industrial labor productivity playedan important role in optimizing the regional layout of the wood processing industry in China.【Method】Using the index developed by Ellison and Glaeser, this paper measured the agglomeration level of the two-digit industry from 1998 to 2016 and agglomeration and coagglomeration levels of the three-digit industry from 1998 to 2013 in China’s wood processing industry. With the three-digit industrial agglomeration and coagglomeration index as explanatory variables and the per capita value of fixed assets as control variables, this paper clarified the effects of industrial agglomeration and coagglomeration on labor productivity.【Result】The results revealed that the agglomeration level of the two-digit wood processing industry had an overall upward trend, while the evolution trend of four three-digit industries varied. The influence coefficient of three-digit industrial agglomeration and coagglomeration level on the agglomeration of the two-digit wood processing industry was 0.342 9 and 0.763 2, respectively. The effects of three-digit industrial agglomeration and per capita fixed asset value on industrial labor productivity was significant, while the effects of three-digit industrial coagglomeration on industrial labor productivity was nonsignificant.【Conclusion】Two-digit wood processing industrial agglomeration was composed of mainly three-digit industrial coagglomeration, and the improvement of industrial labor productivity was driven mainly by such agglomeration. Through the economies of scale and knowledge spillover effects brought by the three-digit industrial agglomeration, the wood processing industry can be effectively promoted to improve quality and increase efficiency.