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Oriented strand board (OSB) Oriented strand board (OSB) is an engineered wood product formed by rectangular wood strands (flakes) arranged in cross-oriented layers with the help of waterproof adhesives. The result is a structural engineered wood panel similar to plywood in strength and performance, but more uniform and less expensive.
OSB vs. Plywood. While OSB (Oriented Strand Board) is generally cheaper than plywood, it is heavier and not as stiff as plywood and can result in soft squeaky floors under weight. The biggest complaint against OSB is that it doesn't handle moisture very well so it is more suited for indoor use.