How to Make a Backlit Wood Sign with a CO2 Laser & LEDs

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If you’ve ever wondered whether you can create a large custom backlit wood sign with a CO2 laser that fits on your desk, the answer is yes, but it requires a little creativity.

I was recently commissioned by a local restaurant to build a 4×4.5 ft backlit logo sign for their lounge. The challenge?

My laser cutter is only 23″ wide and I don’t have the fancy conveyor attachment.

Instead of turning down the project, I had to design a workflow that combined laser cutting, woodworking tools, and LED lighting to create something much larger than my machine.

In this article, I’ll walk through the full process of building this sign from preparing the logo to installing the LED backlighting.

If you want to see the full build in action, watch the video below.

Tools and Materials Used

Below are the tools and supplies used to build this project.

Tools

Materials

Step 1: Preparing the Logo for a Backlit Wood Sign

The client for this project provided their logo as a PNG file. I’m also pretty sure it was designed using AI, so it would require some work.

Since the final sign would be about five times larger than the original file, the first step was cleaning up the logo and converting into a vector file, so it can be properly laser cut. This is critical for large signage because even small imperfections become very noticeable when scaled up.

I started with xTool Studio’s Trace feature and edited each of the individual nodes accordingly until I had smooth lettering with minimal points.

While preparing the file, I also had to ensure that the logo letters would be thick enough to hide the risers, LED strips, and wiring behind them. This was easy enough to accomplish in xTool Studio using their Offset feature and increasing outer shapes by a couple of millimeters.

Step 2: Designing Around a Small Laser Bed

The biggest challenge of this project was size. To build the sign, I purchased a 4×8 sheet of 1/2 inch birch plywood I picked up from Home Depot.

Since the largest letters of this logo were about 24-26” in height, I wasn’t able to use the laser cutter for this portion. I decided to split the large letter design into multiple pieces that could fit within my 12×23” laser bed and laser cut them using scrap wood.

I would then assemble each of these pieces together using CA glue and tape creating stencils.

Step 3: Cutting the Large Letters

Using the laser-cut stencil as a guide, I attached it to the sheet of Birch plywood using double-sided Gorilla tape then cut the full-size letters using a jigsaw. To clean up the edges and get a closer match to the stencil, I then used a router with a flush trim bit along the edge to refine the shape.

Quick Tip: If you ever need to remove stubborn adhesive, a heat gun helps loosen the glue.

Step 4: Building the Wood Sign Backer

The 4×4.5-ft backer was built using the remaining 1/2” Birch plywood sheet. A wooden frame was added around the perimeter to add space behind the backer and hide all of the LED wiring that would come later.

Additionally, a french cleat was built into the backer to simplify hanging it when it comes time to install.

This structure allowed the sign to hang cleanly on the wall while keeping the wiring invisible.

Step 5: Laser Cutting 1/2″ Birch Plywood with the xTool P2

Before committing to the rest of the design, I needed to know if my xTool P2 CO2 laser could cut 1/2″ birch plywood. Alternatively, if it didn’t, each of the letters would have to be cut out of the plywood using a scroll saw.

To test this, I ran a laser cut test grid to find the right settings for the P2. Thankfully, the results were successful and the laser was able to cut the smaller letters cleanly.

If you’re new to laser settings, I cover the basics inside my Laser Learning Hub, where I share beginner resources for laser cutting and engraving.

Step 6: Making the Letter Risers

To create the backlit effect, each letter needed to sit slightly away from the backer.

Since the xTool P2 could cut the 1/2” Birch, I used the remaining pieces to laser cut the wood risers. Using the opposite offset feature in xTool Studio this time and adding it to the inner shapes only, I was able to create thin enough pieces to fit within and behind the visible logo letters.

This would create enough space for the LED strips to wrap around and shine outward around the edges.

Step 7: Laying Out the Wood Sign Logo

With the smaller letters and risers cut, I designed a stencil in xTool Studio as well and laser cut it out of cardboard to help with the alignment of the letters on the sign.

I lightly traced out all of the risers on the backer using a pencil based on the stencil. Since I designed all of this within xTool Studio using exact dimensions, it wasn’t too difficult to figure out the placement of the larger letters.

By measuring the distance of each piece away from the edges (top, sides, and bottom) of the backer using a combination square, I landed on the correct placement pretty quickly.

Once everything was traced, I pre-drilled holes directly through the backer within the traced letters. I then placed the risers on top of these holes, then drilled through the holes again from the back through the risers.

These holes would act as registration marks, so I would know how the letters should align once everything is repainted.

I then replaced the risers with the actual letters, then drilled through the back again through the same holes, creating the same marks in the back of the letters.

Important Note: I made the mistake at this step of affixing the risers to the backer using CA glue at this step before final coating the backer, which made painting the backer difficult. I strongly recommend doing this part after the backer is final coated.

Step 8: Painting the Sign Backer

There are several ways you can go about adding color to your own sign backer. This can be using interior or exterior paint with a roller, staining your wood or adding a finish, purchasing colored wood, acrylic, or other material.

For this particular sign, I went with painting it using a nap roller, which would be ideal if you can paint the backer without anything attached to it first. Once the logo pieces are attached, getting a smooth finish becomes difficult if trying to paint around them.

Alternatively, if you own a paint sprayer, this can give you the cleanest and most even coverage. This is what I chose for this sign.

Step 9: Priming and Painting the Letters

To get a smooth finish for the sign, the letters were painted using spray paint.

The process looked like this:

3 Coats of Automotive Primer
Sanding between coats using 220 grit sandpaper
2-3 final coats of black spray paint

Tips for spray painting:

Shake up your cans for at least 60 seconds
Ideal temperatures for spray painting around above 65º with low humidity
Heat up your cans by placing in warmer rooms or sitting in warm water if you’re spraying in low temperatures
If there are blemishes in your final coats, you can wet sand your piece with a high grit sandpaper and repaint

Step 10: Installing the LED Backlighting

To create the backlit effect for this sign, we went with RGB COB LED strips. These LEDs produce a much smoother lighting effect than traditional LED strips.

The LED strips were wrapped around the risers behind each letter and attached using their self-adhesive and some additional hot glue to keep them in place.

To keep the wiring organized:

Holes were drilled through the backer
LED strips were connected with 4-pin connectors
Wires were secured with crimp connectors and heat shrink tubing on the back

Keeping the wiring hidden was essential for maintaining the clean backlight effect.

Step 11: Final Assembly

Once the LEDs were installed, the final step was permanently attaching the letters.

Because the holes had been pre-drilled earlier in the process, this stage was mostly about patience and careful alignment. The final letters would be secured in place using 1.25” screws through the backer and risers and into the logo letters.

Seeing the finished sign fully illuminated made all the effort worth it.

What This Project Taught Me

Building a large sign with a desktop laser taught me several important lessons.

Always plan more time than you think you’ll need: Large projects almost always take longer than expected, especially when experimenting with new techniques.
Your laser doesn’t have to be the only tool to get the job done: A laser cutter is incredibly useful, but it’s just one tool in a larger workflow. When combined with traditional woodworking tools it opens up so many more possibilities.
You don’t need a bigger machine to build bigger projects: Sometimes the best solution isn’t upgrading your equipment. Instead, you can design a workflow that works around your machine’s limitations.

Sometimes the best solution isn’t upgrading your equipment. Instead, you can design a workflow that works around your machine’s limitations.

Final Thoughts

This project took about a week from start to finish and pushed me to experiment with new techniques.

From designing around a small laser bed to integrating LED lighting, it showed how combining tools can expand what’s possible in a workshop.

If you’re considering making custom signs for local businesses, this type of project can be both creatively rewarding and a great opportunity to build up your experience and portfolio.