The synthesis of an innovative bio-composite material based on wood and lactic acid oligomers has been reported in Part 1. As a continuation of this previous work, this paper examines the bio-composite material's physical and mechanical performance. Properties were assessed in terms of dimensional stability, decay resistance, leaching, bending, shearing, compression and hardness testing. It has been shown that physical performance of the bio-composite was highly improved, in spite of high leaching mass loss. The mechanical structural properties were not strongly affected, except in decrease of shearing resistance due to the middle lamella degradation. An increase in hardness properties was also noticed.