
OSB has some advantages over plywood:
OSB is generally more square and has smaller dimensional tolerances
It can be manufactured into panels of up to 8' x 24', far larger than plywood
There are no soft spots such as those that can occur in plywood
OSB is made from smaller (often farmed) trees reducing the demand for old growth timber
OSB has greater shear strength than plywood; the span rating, nail pull and screw hold are all roughly the same
It can be $3 to $5 a panel less expensive than plywood. For a typical 2400 square foot home, OSB will save about $700 if used as the subfloor, sheathing, and roof decking instead of plywood.

The major disadvantage of OSB is that if it gets exposed to significant amounts of water or moisture, the edges expand by up to 15%. . .especially if they are cut edges. This swell will then telegraph onto the shingles or some flooring. When plywood gets wet, it expands evenly throughout the panel, dries more quickly and shrinks down to its original size more rapidly than OSB.