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From Terraria Wiki
Shadewood is the Crimson replacement for normal wood. It works the same exact way as normal wood but has a blue-gray tint. Shadewood can be acquired by chopping down trees that have been afflicted by the Crimson. Shadewood has better attributes than if you crafted something from normal wood (example: normal wood sword does 7 damage while a shadewood sword does 10 damage).
Palm trees that have grown on Crimsand will give this wood instead of Palm Wood.
A good tactic for procuring shadewood early on is to use your axe as a weapon as well as a tool. While chopping trees, face the direction of any approaching threats. Early-game axes have arguably impressive knockback, making it a great option for a multitasking tool to fend off enemies and get shadewood simultaneously.
These recipes use "any wood" (any combination of the various forms of wood).
- 1.2.4: Is used to craft Shadewood Clock and Shadewood Sofa.
- 1.2.3: More shadewood furniture and lighting introduced.