Natural Palo Santo Sticks Price for 10Pcs Pack Product Of Peru, Sustainably Harvested Burning as incense: Palo santo wood or resin can be burned as incense. This is called "smudging". Palo santo (Bursera graveolens) is a tree that’s native to Peru, Ecuador, and other South American countries. It grows in dry tropical forests and produces very fragrant resin. In Spanish, palo santo means “holy wood.”