Abstract: Spalted wood veneer, which can be used in the commercial production of engineered wood flooring having a spalted wood veneer decorative layer, is produced by forming a wood veneer piece, inoculating the wood veneer piece with spalting spores, subjecting the inoculated veneer piece to a predetermined environment, then inspecting the inoculated veneer piece to determine the degree of spalting, and when a desired degree of spalting is reached, deterring continued spalting.