I've done it with small marquetry pieces......the wood accepts the dye very well. The issue you have to be aware of is the clearcoat finishing. Brushing on polyurethane will drag one dyed piece onto another......for example, if you have a black dyed piece next to a yellow dyed piece, when you brush on the poly, the black will bleed into the yellow. To correct this, you should put a thin coat of poly on each color first, before putting them next to each other (if that makes sense).