Clean the entire surface area of the stall until you reach the bare dirt. Remove all accumulated manure, old hay, straw and other debris. Smooth out the dirt as much as possible to create a level surface for the sawdust.
Obtain wood shavings specifically designed for use in horse stalls. Other types of sawdust and wood shavings may contain wood that is potentially toxic to horses.
Spread the sawdust out on the dirt to a depth of 6 to 12 inches. Smooth the sawdust with a shovel or pitchfork to create an even surface.
Clean the stall daily, using a pitchfork to remove any manure piles and wet spots. Add additional sawdust as necessary.
Clean the stall until all manure, hay and straw has been removed. Smooth the dirt out to create a smooth and level surface.
Open the bags of compressed wood pellets and spread them in the stall. Use only wood pellets designated as horse bedding. The wood pellets used in wood burning stoves often contain wood that is toxic to horses. If you prefer not to use wood-based products, use straw or equine bedding made from shredded corn cobs.
Spread the wood pellets around until the entire surface of the stall is covered. Expect to use between 6 and 10 bags of compressed wood pellets to cover a 12-by-12-foot stall.
Spray the surface of the stall lightly with a hose. The wood pellets begin to fluff up into wood shavings. The pellets expand as they get wet, absorbing moisture and helping to keep the stall clean for a longer period of time.
Clean the stall daily to remove manure piles and wet spots. The compressed wood pellets last longer than traditional sawdust, making them more economical in the long run.