Utilizing wood powder and corn starch as the main materials with polyurethane adhesive as a cross-linking agent, the starch/wood powder composite material was prepared via molding forming techniques. The effects of wood powder mesh and addition of wood powder on the properties of composite material were investigated. The compatibility of starch and wood powder and the thermal stability of composite were evaluated by scanning electron microscopy (SEM), thermogravimetric analysis (TGA), and dynamic mechanical thermal analysis (DMA), respectively. The mechanical properties and water absorption of composite material were also tested. The results showed that the mechanical properties and water resistance of composite material first increased and then fell with increasing mesh, and the best performance was obtained when the mesh ranged from 80 to 100. The best compatibility, mechanical properties, water resistance, and thermal stability of composite material was obtained with 10% polyurethane crosslinking agent addition.