A method of drying a veneer sheet is provided. The method comprises the steps of tenderizing, compressing, and drying a veneer sheet. The compressing and drying steps are performed at the same time. The tenderizing step is preferably performed before the above two steps but may be done thereafter or at the same time. An apparatus for performing the method is also disclosed. The apparatus comprises tenderizing means, deceleration transfer means, and heating means. The deceleration and the heating means are combined into one section. A plurality of rollers are used as deceleration transfer means.