Much like Sage, Palo Santo wood is used for clearing spaces of negativity. The tradition of burning Palo Santo originated in South America, particularly in Peru. The burning of Palo Santo not only energetically cleanses spaces, but is said to bring in uplifting energy as well. The wood of the Palo Santo tree is said to be Holy, and tradition states that only fallen pieces of wood can be harvested for use.
While everyone may describe the smell of Palo Santo a bit diffidently, it smells sweet (similar to anise in my personal opinion), and a bit like citrus. When burning Palo Santo, you should have a heat safe container to hold under the wood. It is meant to be held in the hand like a wand when burning (watch your fingers). A little bit of Palo Santo can go a long way. If you wish to use your piece of Palo Santo more than once, you can stub it out in your heat safe container for next time. Palo Santo is also linked closely with the root chakra, so it is good for creating a sense of grounding in your space as well.