A comprehensive two-dimensional model is used to simulate the drying of wood chips in superheated steam. Emphasis is put on the drying conditions present in a pneumatic conveying dryer, i.e. high heat transfer rates and pressures. The internal mass transfer for these conditions limits the drying rate and, for a successful dimensioning of such dryer, not only the conditions inside the dryer but also the mechanisms occurring inside the single chip must be well understood. Wood chips of different sizes and species are studied. The effect of varying inlet temperatures of the chips (preheating), as well as the flashing effect at the outlet when the pressure drops (postdrying), are investigated. Different design parameters, such as the value of the heal transfer coefficient and the necessity of a two-dimensional model for the single wood chip, are also discussed.