In this paper, a new type dryer and its heat supply system for particleboard production were introduced. The dryer was designed based on the wood drying principle, combined with the thermal oil heating technology, which is high efficiency in energy saving. Two heating sources with different temperatures respectively supplied heat to horizontal jet dryer. Thus the heat energy consumption was reduced obviously. On the other hand, owing to the airflow selecting effect, the deviation of final moisture content of particles was small. High quality flakes can be obtained. This kind of dryer can also be applied to MDF production.