Wood is a typical anisotropic material with considerably lower transverse compressive strength than longitudinal compressive strength. In the field of wooden structure design and construction, the occurrence of tilting or even collapse due to transverse compression is a common challenge requiring careful consideration. Presently, reinforcement materials primarily include steel bars or screws, yet a comprehensive examination of internal force dynamics within reinforced wood is lacking. This study utilizes Japanese larch (Larix kaempferi (Lamb.) Carriere) as the wood material, reinforces the wood through the insertion of wood dowels made of Schima superba (Schima superba Gardner & Champ.), and investigates the effects of the number and length of wood dowels on the transverse compressive strength and modulus of elasticity of the wood. A simulation model is established using the finite element software to analyze stress and strain variations in samples following wood dowel implantation. The study investigates the predictive and simulated influence of wood dowel diameter on the transverse compressive strength and modulus of elasticity of wood. The main conclusions are as follows: (1) Employing a 90 mm wood dowel can effectively increase the radial and tangential compressive strength as well as the modulus of elasticity of the wood. (2) Introducing wood dowels can influence the stress and strain distribution within the internal structure of wood, with increasing trends observed as the length of the dowel increases. (3) When the length of the wood dowel amounts to 90 mm, augmenting the diameter of the wood dowel can efficaciously enhance the transverse compression strength and modulus of elasticity of the wood.