Palo santo sticks can be used to clear negative energy in your home, find calm, and deepen your connection to the Earth. Smudging palo santo can create a cathartic ritual. Palo santo incense is an easy-to-use way to experience the plant's scent. Palo santo wood, which translates literally to "holly wood" in Spanish, is the harvested wood from palo santo trees which are found primarily in South America and in some regions of Central America.