Hinduism

Sandalwood paste is integral to rituals and ceremonies, to mark religious utensils and to decorate the icons of the deities. It is also distributed to devotees, who apply it to the forehead or the neck and chest. Preparation of the paste is a duty fit only for the pure, and is therefore entrusted in temples and during ceremonies only to priests.

The paste is prepared by grinding wood by hand upon granite slabs shaped for the purpose. With slow addition of water a thick paste results, which is mixed with saffron or other such pigments to make Chandana.

Sandalwood is considered in alternative medicine to bring one closer to the divine. It gives a cool soothing effect to the body thus reducing the body heat. In Thirupathi after religious tonsure, Sandal paste is applied to protect the skin. Sandalwood essential oil is used for Ayurvedic purposes and treating anxiety.

Buddhism

Sandalwood is considered to be of the padma (lotus) group and attributed to Amitabha Buddha. Sandalwood scent is believed to transform one's desires and maintain a person's alertness while in meditation. Sandalwood is also one of the more popular scents used for incense used when offering incense to the Buddha.

Chinese and Japanese Religions

Sandalwood, along with agarwood, is the most commonly used incense material by the Chinese and Japanese in worship and various ceremonies. It is used in Indian incense, religiously or otherwise.