This study analyzes regional disparities in the impact of timber industry agglomeration on forest product quality in China using 2012–2021 panel data. By employing the location entropy index to measure agglomeration and technological complexity to assess product quality, this study reveals a positive correlation between agglomeration and quality. Regional impacts vary: the east shows no significant effect, the central region a positive correlation, and the west a negative effect. Robustness is confirmed through temporal adjustments and instrumental variables. The study suggests strategies to improve forest product quality, emphasizing the need to enhance technical production and management capabilities in the timber industry, which positively affects wood product quality and competitiveness.