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Accurate information on the timber quality of hardwoods is often lacking, in particular for standing trees. In situ measurements of timber quality have the potential to improve the economic yield of a stand and may contribute to the optimal timing of a harvest and, in general, to improving forest management. Here, we used terrestrial laser scanning (TLS) to assess external timber quality metrics nondestructively. We investigated how competition intensity affected the metrics of 118 European beech (Fagus sylvatica L.) trees. We found that two newly developed TLS-based measures of external stem characteristics (number of bark anomalies per metre and stem non-circularity) were affected by competition intensity, suggesting that regulating competition levels may improve timber quality. Our study confirms empirical findings indicating a positive relationship between competition intensity and timber quality of European beech and offers a new methodology to assess external timber quality measures in the field objectively and nondestructively.