Cross-laminated timber (CLT) possesses both good shape stability and the possible two-way force transfer ability due to its crosswise lamination. However, the transverse layers in CLT are prone to rolling shear failure under an out-of-plane load. An innovative multi-layer composite laminated panel (CLP) was developed by combining structural composite lumber (SCL) and dimension lumber to overcome the rolling shear failure while maintaining high mechanical performance and aesthetic appearance of natural wood. The mechanical properties of 5-layer CLP consisted of laminated strand lumber (LSL) and dimension lumber with different layups were evaluated by both static and modal tests. The results showed that the shear resistance, bending stiffness and moment resistance of CLP were up to 143%, 43% and 87% higher than their counterparts of regular CLT, respectively. The failure modes observed in both shear and bending tests indicated that the use of LSL in transverse layers could eliminate the potential rolling shear failure in CLT. With the lamination properties from components tests as inputs, the validity of shear analogy method was assessed by test results. The mechanical properties can be well predicted by shear analogy method except for the bending moment resistance of CLP and CLT with either rolling failure in the cross layer or tension failure in the bottom layer.