In order to expand the application of low-density wood-based panels, the authors developed a new kind of composite by using poplar particles and foamed polystyrene. Veneers were further overlaid on the composite to improve mechanical properties. The results showed that the bonding strength and modulus of rupture of the composite panels were greatly enhanced while density was maintained at 0.45 g/cm3. Mechanical properties of the composite panels met the A-grade requirements for Chinese National Standard GB/T 4897.1-2003 so that the panels could be used for furniture making, interior decoration and thermal insulation.