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Completing the final touches with a wood carving project is a completely different process and can even take as long as actually carving it. These final touches can include adding your favorite wood polish/finish, but before you can even do that, the most important part, arguably, is sanding it down. The best sandpaper for wood often depends on what you need it for (removing a lot of wood material, fine sanding, etc.)
Low grit count coarse sandpaper for removing wood material rapidly. For first touch sanding.
Medium grit count to smoothen out rougher areas. Does not remove paint or varnish. Use as a follow up to coarse sandpaper.
Fine grit count for slowly removing wood material. Follow up to medium grit sandpaper.