Since, Parawood is claimed to be an environmental friendly material, this review aims toreveal the environmental aspects of Parawood for Life Cycle Inventory (LCI) preparation. The scope of this review includes both quantity and quality of goods, substances and energy that are factors of production of Parawood products supply chain of which the boundary of this literature review includes land-used change, cultivation period, rubber harvesting and maintaining growth, felling, sawing, wood preservation, kiln drying, finger joint and lamination. From this literature review, it is shown that many data is needed to bring in to complete the inventory. Even Parawood is by-product of a tree plantation crop (rubber) and is concurred as sustainable material, there are still many disadvantages. To make Parawood to be environmentally friendly and truly sustainable products, limitations and other impacts need to take into account. Life Cycle Impact Assessments (LCIA) of interested characteristics (for instance global warming potential, acidification, ozone layer depletion, etc.) are required subsequent to LCI data. © Medwell Journals, 2013.