Just in case you ever get involved in a woodworking trivia contest, here’s the question of the day. What’s the difference between a dado and a groove? Or, you might ask, is there a difference at all? The answer is yes, there is a difference. You can find out what it is right here so you’ll be ready to stump your woodworking buddies with this question.
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So do you cut groves or dados in plywood?
With plywood the same nomenclature applies. You would simply reference the face veneer to determine whether the recess would be considered a groove or a dado.
I would suggest that a dado is a slot cut for a snug fit, and a groove is a slot cut for a loose fit (especially when thinking about the bottom of a drawer).
my understanding, as an ameteur, is that a dado goes across the grain, and a groove goes with the grain.