Abstract: A sawmill that is a compact integrated unit of a multiplicity of components all mounted on a common frame for performing different functions to produce pieces of lumber from a log. Logs can be processed that have a minimum diameter of approximately 2" and a minimum length of approximately 42" with the overall length of the mill being approximately 17'. There are a number of power driven feed and guide rolls that propel a log endwise along a fixed path. The processing components include first and second pairs of chipper canter units with novel chipper heads, a pair of rabbet units in which each has a pair of cutter heads on concentric telescopic shafts and power driven rolls for off-feeding pieces of lumber of differing widths. The log feed speed and/or chipper head speed can be varied to provide chips of selected different lengths. Positioning of the processing units is controlled by a programmed processor unit.