A computer model has been developed to quantify the thermal energy flow in the production process of medium density fiberboard (MDF). The processing elements that consume thermal energy are grouped into three primary unit operations: chip preheating and refining, fiber drying, and mat hot pressing. With inputs of MDF annual production, plant operation hours, product grade, and fiber drying method, the model is able to predict the thermal energy demand and distribution, energy quality, and self-sufficiency level with using the wood residues generated on site. The simulation results have shown that for a typical MDF production line, the thermal energy demand for regular or standard grade of MDF is 989 kWh/m3 using flue gas for direct fiber drying or 1168 kWh/m3 when a hot air stream is used for fiber drying. The simulation results are in close agreement with the energy survey results of commercial plants with a discrepancy of -17 percent to +6 percent.