Due to the rising prices and high demand for panels and the fact that formaldehyde—a known carcinogen—is used to manufacture conventional particleboard, this study investigated the suitability of particleboard formed from ground macadamia nutshells mixed with 50%, 40%, 30%, and 20% of gum Arabic and determined its physical and mechanical properties. The specific gravity, the bulk density, the x-ray fluorescence, and the scanning electron microscopy analysis of the two materials were analyzed. After production, the particleboards were cured for 56 days in an acclimatized room; then, the physical and mechanical properties were evaluated. Particleboards mixed with 50% gum Arabic and 50% macadamia nutshell showed good results in terms of the lowest average values of water absorption (9.42%) and thickness swelling (6.22%) after 24 h of immersion in distilled water as well as the highest density (1219.20 kg/m³), modulus of rupture (12.21 MPa), modulus of elasticity (1.81 GPa), internal bond strength (1.25 MPa), and compressive strength (22.54 MPa). According to ANSI/A208.1-1999, the particleboards produced met the standard for general-purpose boards except for water absorption (WA) and thickness swelling (TS) characteristics, which were above the maximum of 8% and 3%, respectively.