Palo santo is said to cleanse the negative energy away and bring in good energy. Palo santo essential oil is mainly composed of limonene. Limonene is a substance with insecticide properties, so it is used in natural insect repellants. Limonene also has analgesic (pain-relieving) and anti-inflammatory properties. Many people find the aroma of palo santo to be relaxing, so it is commonly used to relieve stress.