Foaming of wood-fiber/plastic composites (WPC) with a fine-celled structure can offer benefits such as improved ductility and impact strength, lowered material cost, and lowered weight, which can improve their utility in many applications. However, foaming of WPC is still a poorly understood art. This paper presents a review of material published, which address the various critical issues particularly in extrusion foaming of WPC, and the proposed processing techniques and strategies, for producing artificial wood with enhanced properties.