Synthetic and heavy metal antifungals are frequently used as wood preservatives. However, they exhibit relatively inert biodegradation and toxic properties when leached; this makes their replacement with environmentally degradable yet functional alternatives a key target in the wood protection industry. In this context, distilled fractions of raw thermomechanical pulp turpentine (TMP-T) from Picea abies were assessed for their wood protecting capabilities against wood-decaying fungi. Antifungal bioactivity of fractions and some of their combinations were screened on agar-plates against the brown-rot fungus Coniophora puteana. Addition of TMP-T fractions showed a significant fungal growth rate reduction, while mixtures indicated the presence of synergistic and antagonistic effects. One fraction, obtained after distilling 1 L TMP-T at 111–177 °C at 0.5 mbar, showed complete growth inhibition of Antrodia sinuosa, Serpula lacrymans, Serpula himantioides and significant inhibition of Antrodia serialis, Antrodia xantha, Gloeophyllum sepiarium, Heterobasidion parviporum at a concentration of 1000 ppm. This fraction was further examined for long- and medium-term effects on wood decay in microcosm soil-jar and field experiment, respectively. The known antifungal compounds benzisothiazolinone, 2-octyl-4-isothiazolin-3-one, 3-iodo-2-propynyl N-butylcarbamate and two commercial wood preservatives were used as reference treatments. Commercial preservatives instilled long-term efficacy against C. puteana wood decay in a soil-jar microcosm experiment, but no noticeable protection with antifungal compounds or the present treatments was found. However, a moderate effect by the TMP-T fraction from the in vitro assay was observed and the TMP-turpentine distillation residue showed a similar fungal inhibition effect to the most potent commercial treatment after 29 months in the field.