Particle board is cheaper, denser and more uniform than conventional wood and plywood and is substituted for them when appearance and strength are less important than cost. However, particle board can be made more attractive by painting or the use of wood veneers that are glued onto surfaces that will be visible. Though it is denser than conventional wood, it is the lightest and weakest type of fiberboard, except for insulation board. Medium-density fibreboard and hardboard, also called high-density fiberboard, are stronger and denser than particle board.

A major disadvantage of particle board is that it is very prone to expansion and discoloration due to moisture, particularly when it is not covered with paint or another sealer. Therefore, it is rarely used outdoors or places that have high levels of moisture, with the exception of some bathrooms, kitchens and laundries, where it is commonly used as an underlayment beneath a continuous sheet of vinyl floor covering. In such an installation the edges must be properly covered upward against the wall and joints and non-covered edges must be properly sealed against moisture penetration. A higher quality material not subject to expansion is underlayment-grade plywood, which is constructed without interior voids in its layers to better resist the high local pressure from objects such as stiletto heels.