Start by cutting wood pieces to frame the lantern, creating a top, bottom, and four sides. Use wood glue and small nails to assemble the frame. Add a glass or acrylic panel to each side to protect the candle flame from wind. Secure a metal handle for hanging. Stain or paint the wood for weather resistance, then finish with an outdoor polyurethane coating for durability. Leave space in the frame for a door or opening to place the candle inside.