Genetic parameters for wood stiffness and strength properties were estimated in a 29-year-old hybrid larch stand (Larix gmelinii var. japonica x Larix kaempferi). The study included 19 full-sib larch families from Hokkaido, northern Japan. Implications of these genetic parameters in wood quality improvement are subsequently discussed. Traits included in the analyses were the dynamic modulus of elasticity of green logs (E-log), the modulus of elasticity (MOE), the modulus of rupture (MOR), compression strength parallel to the grain (CS) in small clear specimens, wood density (DEN), and diameter at breast height (DBH). DEN had the lowest coefficients of variation and MOE the highest. The narrow-sense heritability estimates of E-log, MOE, MOR, and CS were 0.61, 0.44, 0.60, and 0.43, respectively, and those of DEN and all mechanical properties increased from an inner to outer position within the stem. E-log and DEN had high positive phenotypic (0.52-0.83) and genetic (0.70-0.92) correlations with MOE, MOR, and CS. The mechanical properties of the inner position of the stem had rather high phenotypic and genetic correlations with those of the outer position and overall mean. The predicted gains in wood stiffness (Elog and MOE) were higher than those of the strength properties (MOR and CS). The predicted correlated responses in MOE, MOR, and CS when selecting for E-log and DEN were 72.6%-97.8% of a gain achievable from direct selection of these traits. DBH showed an insignificant correlation with all mechanical properties, although selection of this trait had a slightly negative effect on the mechanical properties.