Santalum austrocaledonicum is native to the island archipelagos of New Caledonia and Vanuatu where it grows
as a small, root-parasitic shrub or tree, typically with a short, crooked bole and spreading crown. It produces a highly valuable heartwood and essential oil. The species is mainly harvested from the wild and has been an important source of income for poor rural peoples for centuries. Most native populations are greatly depleted and major replanting efforts are now underway.