Current political and sociological efforts to respond to the need for more environmentally friendly technologies have inspired a revival of wood and wood-based material utilization in space systems. The popularity of these materials has faded since their widespread use in the early days of aerospace engineering. This work reviews the literature to provide an overview of use cases, the motivation for using wood and wood-based materials and the challenges involved. A small number of applications were identified in which wood and wood-based materials were preferred over non-renewable raw materials. They are mainly applied for less-stressed disposable components or as a thermal protection material. It can be shown that the applied wooden materials have advantages such as low production costs, easy availability, easy and environment-friendly decomposition and low weight. However, only a limited number of applications have achieved a high level of technological readiness so far. Properties such as anisotropy and a lack of uniformity, defects in wood, the quantity available material and a lack of standards for the certification of wooden materials represent challenges. These are addressed in the current research, which additionally focuses on sustainable growth, enhanced environmental friendliness and advanced lightweight design.