Can wood be used to make the frame of bicycle and why?

There's not much point in building wooden bikes.

Bike frames have several highly stressed points(bottom brackets, head tube, dropouts, seat tube, fork crown...) This means that even if wood is OK for the parts between the high stress areas, you still have to add metal brackets to deal with the point loads.

Unless you specifically want to have a wooden bike (and is willing to pay for it) it'd have been more effective to build the bike out of a stronger material to start with.

Answer:

Wooden and bamboo bike frames are not uncommon. The running gear and swivel points continue to be made of metal but the piping that makes up the frame can be made of a wide variety of materials.

Proponents of wooden bikes state:

• Wood is lightweight
• Ride is smoother as wood can absorb shocks and vibration
• It is possible to engineer the stiffness of the frame
• Modern wood is durable often performing better than metal. This includes the mean time to failure from fatigue.
• Wood is aesthetically pleasing.
• Wood is environmentally friendly if sustainable wood and bamboo is used.