The lumber mill is a location featured in Daxter. It was the site of a metal bug infestation until Daxter arrived to clean it up. After being told by Osmo that "things are heating up outside the city", Daxter arrived at the lumber mill where he met Lenny. He told him of the drifters that had arrived there and begun spawning metal bugs, explaining that he set up bug zappers but everyone else was too afraid to activate them and he himself had "carpal tunnel". After Daxter activated the bug zappers, killing the drifters, Lenny was able to operate the mill again.
The lumber mill operates inside a large forest situated outside of Haven City, south-west of Mountain Temple, though it is accessed via a warp gate in the power station. The forest appears to be amid fall, brandishing a prominent orange color with piles of dead leaves on the ground and leaves falling from above. The area has various milling and logging equipment, with antiquated crosscut saws stuck in large trunks and lying around on the ground, skidders and cranes visible in the background, and a large amount of sawmill stations. There is also plenty of streams throughout the area, often use for sending logs along.
The first area of the lumber mill visited is a very large tree stump, on top of which Lenny stays. Across an adjacent stream is a large sawmill area, with a lot of automated blade stations and tethered stacked logs. This area contains the entrance points to the rest of the forest. To the far right is where the log chute is located, which transports Daxter to an exit warp gate. To the far left is a network of streams decorated with lily pads and infested with lurker sharks. In the middle of the large sawmill section is a hollowed out log which leads to an additional sawmill network, which has connections to the stream and an additional logging area.