In this study, poly(vinyl alcohol)(PVA)/wood powder composite was prepared by the solid state shear milling (S3M) method. The results showed that S3M could significantly pulverize and mechanically activate wood powder and PVA, thus improved their interfacial compatibility and the dispersion of wood powder in PVA matrix. Treated by S3M, the average particle size of wood powder decreased from 47μm to 25μm, the rupture of PVA molecular chains occurred, and more looser crystalline structure of PVA formed. All were beneficial to enhance the intermolecular interactions between PVA and wood powder. In this way, the content of wood powder in PVA based composite could reach to 90wt%. Even though, the PVA/wood powder composite still had good processability. For example, the melting temperature of the composite with 70wt% wood powder was 167oC, and its initial decomposition temperature was 246oC, obtaining the thermal processing window of 79oC. Compared with the composite without S3M technology, the tensile strength of PVA/wood powder (7:3) composite increased from 16MPa to 24MPa, and the elongation at break increased from 32% to 85%. The novel S3M technology offers a new way to efficiently utilize the abundant biomass materials such as wood powders.