The review covers investigations on wood-inhabiting bacteria and their significance in wood quality carried out in the Hamburg institute, with some additional literature. It addresses bacteria isolated from various woody tissues, their action on pits and woody cell walls, examples for wood discolouration by bacteria, the degradation of wood in soil and water environments and of timber treated with preservatives, methods for decay measurement, the efficacy of preservatives, trends to detoxify treated timber waste and aspects of bacteria as bioprotectants.