The primary causes of defects in planed timber surfaces have been identified to be cutting tool inaccuracy and forced vibration during the machining process. It is noted that the current mechanical methods used in the woodworking industry to improve surface finish quality have disadvantages that defeat their original attractiveness. This article describes a mechatronic approach used to compensate for cutting tool inaccuracy in wood planing via cutting tool trajectory modification. The approach is based on real-time measurement of the angular spindle position, coupled with periodic vertical displacements of the rotating spindle. A small-scale wood planing machine, which has an actively controlled spindle unit, has been designed for practical investigation of the technique. Experimental results show that the dynamic performance of wood planing machines, and hence the surface finish quality, can be improved via this approach.