A novel process for slicing veneer comprises the steps of (1) submerging a piece of lumber in a water bath maintained at an elevated temperature for a period of time sufficient to eliminate excessive curling upon slicing, (2) slicing a single slice of veneer from the lumber, and (3) returning the lumber to the bath for an additional soak period before running the wood through the veneer slicer. Soaking between each slice produces greater uniformity in the slices, which are dried more easily with consumption of less energy.