To provide a chip-form precursor of a wood-plastic fine powder fuel, which enables combustion of waste wood and waste plastic by a burner and drastically improves their recycling rate, while the waste wood and the waste plastic are produced in large amounts at demolition of constructions but have limited use, and the wood-plastic fine powder fuel.

Primarily crushed wood chips and plastic chips are kneaded, heated, pressurized, deformed, fluidized, extruded and molded into a rod form by an extruder, the obtained rod is crushed with a cutter into a lump, and the lump is cooled and solidifed to yield a short, rod-like solid matter which is the precursor of the wood-plastic fine powder fuel. Here, the plastic chips melt to serve as a binder or an adhesive among the wood chips. The precursor is secondarily crushed into a fine powder.