The accident happened at John Gordon & Son in Nairn, in the Scottish Highlands, at about 8.30am.
An ambulance service spokesman said they received a report of a man being caught in machinery at a softwood timber sawmill.
Police would not confirm details of the accident.
Northern Constabulary and officials from the Health and Safety Executive are carrying out a joint investigation into the man's death.
No-one from John Gordon & Son was available to comment.
A report will be submitted to the procurator fiscal.
Police said the man's identity will not be released until his next of kin have been informed.