The objective of this study was to investigate the lab-scale manufacturing process of insulation fiberboard (IFB) with cellulose nanofibers (CNFs) and evaluate the effects of CNFs on the mechanical and physical properties of the IFB. Because the fabricated IFBs with CNFs had a homogeneous appearance, it was assumed that CNFs can be easily dispersed within IFB by adding them during the mixing stage of the wet process of wood-based board production. The results for the IFBs with CNFs revealed that the density and bending properties increased, while the thickness decreased with an increase in the CNF addition ratio. Furthermore, after the water absorption test, the weight change rates of the IFBs decreased, and the thickness swelling rates increased. Although the size of the specimens was different from the size in JIS A 5905 (Japan Standards Association 2014), the modulus of rupture (MOR) values of IFBs with a target density more than or equal to 0.20 g/cm3 were higher than the value of A-class IFB in the standard for all CNF addition ratios. In addition, lower thermal conductivity may be realized under similar MOR values by adding CNFs to IFB. On the other hand, to produce CNF-reinforced IFBs with target density/thickness, it is necessary to develop a method for decreasing the cohesive force derived from CNF aggregation and the compressive force originating from the water surface tension caused by the high water retention of CNFs.