Although the international trading volume of sandalwood was far less than that of tea,silk and porcelain in the 17th and 18th centuries,the demand for this kind of natural resource increased greatly in China,for the Chinese gradually used this kind of wood in their life and formed a unique sandalwood culture. However,the arrival of Europeans broke the channel for China to obtain the wood in the East Indies. The Dutch even used sandalwood as one of the important intermediary products to open up the Sino-Dutch trade to obtain the much-needed Chinese goods. With the help of various types of Dutch and Chinese materials,this article focuses on the understanding and application of sandalwood in China and the Netherlands and the sandalwood trade between the two countries.