Games like Last Wood
Games like Last Wood include Terraria, Project Zomboid, Rust, 7 Days to Die, and Scrap Mechanic. We matched them by the tags players give Last Wood on Steam (Simulation, Adventure, Indie, Survival, and Building): closest matches first, and among equally close ones the better-known games.

Terraria
Shared: Survival · Sandbox · Adventure

Project Zomboid
Shared: Survival · Multiplayer · Sandbox

Rust
Shared: Survival · Multiplayer · Building

7 Days to Die
Shared: Survival · Multiplayer · Building

Scrap Mechanic
Shared: Building · Survival · Sandbox

Don't Starve Together
Shared: Survival · Adventure · Multiplayer

Raft
Shared: Survival · Multiplayer · Building

Space Engineers
Shared: Simulation · Building · Sandbox

Stardew Valley
Shared: Simulation · Multiplayer · Pixel Graphics

Forager
Shared: Survival · Indie · Adventure

Feed and Grow: Fish
Shared: Simulation · Survival · Multiplayer

Oxygen Not Included
Shared: Survival · Building · Resource Management

ARK: Survival Evolved
Shared: Survival · Multiplayer · Adventure

Don't Starve
Shared: Survival · Adventure · Indie

Starbound
Shared: Survival · Adventure · Sandbox

Core Keeper
Shared: Survival · Sandbox · Multiplayer

ARK: Survival Ascended
Shared: Survival · Multiplayer · Adventure

Palworld
Shared: Survival · Multiplayer · Indie

Necesse
Shared: Survival · Multiplayer · Adventure

Satisfactory
Shared: Building · Multiplayer · Sandbox

Sons Of The Forest
Shared: Survival · Multiplayer · Building

Wobbly Life
Shared: Adventure · Simulation · Multiplayer

The Forest
Shared: Survival · Adventure · Building

Conan Exiles Enhanced
Shared: Survival · Building · Multiplayer