A 3 D unsteady simulation model was developed for the air flow and waste particle distribution in the chip removal system of the panel-furniture edge banding machine using Fluent software with sliding mesh technologies and the discrete phase model. It was found that the pressure loss at the inlet and outlet of the origin chip removal system was relatively large, and the capability of adsorbing waste chips was weak. According to the analysis, the structure of the chip removal system was optimized. Compared with the original system, the pressure loss at the inlet and outlet was reduced by 64.1%, and the chip removal rate was increased by 30% in the optimized system under the conditions of tool speed at 10,000 r/min and outlet wind pressure of-1,700 Pa. Testing were performed on the chip removal system before and after the optimization. The results showed that the chip removal efficiency was greatly improved after the optimization, and the pilot testing was consistent with the simulation performance.