The objectives in this study were to characterize and to evaluate physical and mechanical properties of plywood panels using acetic acid and hot water gelatinized glutardialdehyde modified starch as binder. Besides, the characterization of acetic acid and hot water gelatinized glutardialdehyde modified starch adhesives were examined using FT-IR analysis. The plywood panels were manufactured using differences percentage of glutardialdehyde used by which the percentage value were 10%, 20% and 30% based on weight of starch. After that, the plywood panels were tested for their physical and mechanical properties followed Japanese Agriculture Standard (JAS) for plywood. For physical testing, the highest density was 0.38 g/cmᶟ which for 20% and 30% of acetic acid gelatinized glutardialdehyde modified starch. In addition, 30% of acetic acid gelatinized glutardialdyhde modified starch had the lowest moisture content rate and water absorption after 24 hour by which the value were 19.39% and 51.42% respectively. The lowest thickness swelling was 5.56% which for the 10% of hot water gelatinized glutardialdehyde modified starch. In mechanical testing, it was been found that, 30% glutardialdehyde used of acetic acid gelatinized glutardialdehyde modified starch had the highest value for modulus of rupture (MOR), modulus of elasticity (MOE) and tensile shear strength by which the value were 189.38 N/mm², 10688 N/mm², and 1071.39 N/mm² respectively. Therefore, this study indicated that 30% of acetic acid gelatinized glutardialdehyde starch was the best and potential to be used as an eco-binder to produce plywood panels.