This study aimed to analyze the value chain in wood processing industry in the IKM (Small and Medium Enterprises) center of wood furniture in the Village of Genjahan, District Ponjong, Gunungkidul. The subjects in this study were the actors of the value chain in the IKM center of wood furniture in the Village of Genjahan, District Ponjong, Gunungkidul. In this study the sample of 30 respondents were selected using saturated sampling methods and snow ball sampling. The analytical method used is the analysis of the supply chain, value chain and value added. Based on the analysis that has been done shows that, in general, the supply chain of IKM center in the Village of Genjahan, District Ponjong, Gunungkidul consists of 2 models. Model 1 consists of farmers - small and medium industries -sawmill services owners - consumers. Model 2 consists of farmers - wood traders - sawmill services owners - small and medium industries - consumers. The value chain in wood processing industry in the IKM center of wood furniture in the Village Genjahan, District Ponjong, Gunungkidul involves four main actors, farmers and traders of wood as a provider of raw materials, the owner of the sawmill as a provider of sawmill services and IKM actors. The procurement of raw materials from the local area and the technology used is relatively modern, but the ability of human resources and market access needs to be improved further. The biggest added value at this stage of value chain in the IKM center of wood furniture in the Village Genjahan, District Ponjong, Gunungkidul was accepted by the IKM actors.