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Staining on Birch plywood

Okay guys. Still a newbie trying to figure this all out. I have a project a family friend ask me to make. Inside Christmas decoration for their tree that simply has their family name on it. They want the whole board stained in Dark walnut and the cutout lettering for the name to be the natural wood. I tried to stain the wood let rest and dry and then carve but I had so much pullout it wasn’t fix able. Second attempt was to carve and then use a rag to stain but to much running. What steps should i do this in? And I feel like sealing would help but I don’t know what seal to use.

Use a downcut or a straight flue end mill.

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I used a 1/8 straight flute bit. The one with the black band on it. Just seemed as if the stain made the grain shred.

How big is it? Could you use a V bit to cut the name? If you were to cut the wood first and then stain it you would use a good foam brush, Lowe’s sells them. They have a stiff plastic piece in the foam and if you put just a little stain on the brush you will be surprised how nice you can apply it.
Sealing would help if you were painting the cutout, you would use Shellac from Home Depot.
But what you’re trying to do, staining the wood first and then engraving should work. Don’t apply a lot of stain and wipe it off right away so it doesn’t soak in. The bit you’re using should do a pretty good job, I have cut birch plywood using that bit.
Could you take a picture of what the name looks like?
Russell

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If you stain it first your best bet is a down cut bit like @NeilFerreri1 suggests.I have done it many times with little tearout.

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The other technique I find (and I almost always use a downcut) is I got stain with integrated urethane. So it stains and finishes (and holds the grain nicely). You get a really sharp edge then. I think it was a dollar more at my local lumber yard.

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Oh and obviously you need to cut sufficiently deep to get under the stain if you want to see unstained wood. Be aware plywood often has glue pockets which can blow apart and ruin a cut like that.

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