Palo santo smoke is used in smudging rituals to cleanse a person or space of negative energy, create sacred space, and promote creativity. The act of smudging can be cathartic and help with decompressing.

Palo santo can be burned as incense to provide relaxation and calming effects. When burned, the wood releases an aromatic fragrance with notes of lemon, mint, and pine.

Palo santo is a traditional remedy for pain, including arthritis, headaches, and muscle and joint pain.

Palo santo is also believed to have antibacterial, antifungal, and anti-inflammatory properties. It may also help boost the immune system, fight viruses and infections, stimulate circulation, promote sleep, and increase mood and concentration. Some people also apply palo santo oil to their skin or sniff it to relieve headaches.