This study investigated the effects of adding ammonium dihydrogen phosphate (ADP) on the physical and chemical changes of a water-soluble extract of the inner part of oil palm trunk (OPT) to clarify the bonding mechanism of the binderless particleboard. The extract’s effect on ADP-added binderless particleboard was also investigated. OPT particles were treated by hot water at 60 °C for 6 h. Water-soluble extract and treated OPT particles were obtained. ADP was added to the water-soluble extract at 0, 10, and 40 wt%, and the mixtures were heated at 180 °C for 10 min. Furthermore, binderless particleboards using the treated particles were manufactured with similar condition. The 10 wt% ADP mixture changed the water-soluble extract to an insoluble substance, which was twice that of with 0 wt.% ADP addition. Infrared spectroscopy revealed peaks of furan and carbonyl in the insoluble substance. This indicated that the free sugar content in the water-soluble extract would change to furan compounds. Thermal analysis revealed that the resulting insoluble substance had good thermal stability, suggesting a high-molecular-weight substance. The insoluble substance would contribute to bonding of the binderless particleboards. In particular, a significant contribution to the water resistance was observed.