The world trend of re-use of wood and wood products as materials for construction and covering of architectural structures is present not only because of the need to meet the aesthetic, artistic and formal requirements or to seek inspiration in the return to the tradition and nature, but also because of its ecological, economic and energetic feasibility. Furthermore, the use of wood fits into contemporary trends of sustainable development and application of modern technical and technological solutions in the production of materials, in order to maintain a connection to nature, environment and tradition. In this study the author focuses on wood and wood products as an element of facade covering on buildings in our country, in order to extend knowledge about possibilities and limitations of their use and create a base for their greater and correct application. The subject of this research is to examine the application of wood and wood products as an element covering the exterior in combination with other materials applied in our traditional and contemporary homes with the emphasis on functional, representational art and the various possibilities of wood. In this study all the factors that affect the application of wood and wood products have been analyzed and the conclusions have been drawn about the manner of their implementation and the types of wood and wood products protection. The development of modern technological solutions in wood processing led to the production of composite materials based on wood that are highly resistant, stable and much longer lasting than wood. Those materials have maintained in an aesthetic sense all the characteristics of wood that make it unique and inimitable. This is why modern facade coating based on wood should be applied as a facade covering in the exterior of modern architectural buildings in Serbia, and the use wood reduced to a minimum.