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Reinforced concrete is a commonly used material for constructing basements in low-rise buildings or residential houses in Canada, and as the use of cross-laminated timber (CLT) advances, the door to think of an alternative basement material to offset greenhouse gas emissions associated with reinforced concrete is open. However, the evaluation of CLT durability in below-grade environments, specifically concerning moisture and mould development, remains an unexplored field in research. Hence, this paper aims to analyze CLT's moisture response and mould growth risk in below-grade environments using field and laboratory experiments. A laboratory experiment was carried out to test a waterproofing membrane solution selected to compose the wall assembly in the field experiment. A large-scale experimental CLT basement was built at a cohesive soil site in Edmonton, Canada. The field experiment involved monitoring the relative humidity, temperature, and soil volumetric water content of the CLT panels, which measure 3 m by 6 m in plan and 2 m deep. Data was collected for an extended period from June 2022 to July 2023. The VVT model, developed by Hukka and Viitanen (1999) and updated by Viitanen et al., 2011 to estimate the mould growth level, was used to predict the risk of mould growth. The laboratory experiment showed that the waterproofing membrane is suitable for protection against moisture in a still-water setup. Field experiment results suggested that the primary moisture source was below the basement floor when the floor was finished inadequately. The moisture content of CLT walls was significantly increased by floor flooding and decreased by heating the basement interior. The acceptable mould index of three was surpassed during periods of abundant water below the basement floor due to flood events, showing that the CLT panels were at risk of mould growth development. • CLT use inbasements is in research stage. This paper contains insights for developing future research on this subject. • CLT in basement construction requires robust envelope with waterproofing membranes that perform well below grade. • Elevated moisture levels could pose structural and biological risks to the CLT basement and its occupants. • CLT basement walls take time to dry, and during this period, the walls may be exposed to risky levels of mould growth. [ABSTRACT FROM AUTHOR]