the fragrant heartwood of any of certain Asian trees of the genus Santalum, used for ornamental carving and burned as incense.
any of these trees, especially S. album (white sandalwood) an evergreen of India, having ovate leaves and yellowish flowers that turn red.
any of various related or similar trees or their woods, especially an East Indian tree, Pterocarpus santalinus (red sandalwood) of the legume family, or its heavy dark-red wood that yields a dye.

1505–15; sandal2 + wood1 Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
sandalwood or sandal (ˈsændəlˌwʊd)
1.  any of several evergreen hemiparasitic trees of the genus Santalum, esp S. album (white sandalwood), of S Asia and Australia, having hard light-coloured heartwood: family Santalaceae
2.  the wood of any of these trees, which is used for carving, is burned as incense, and yields an aromatic oil used in perfumery
3.  any of various similar trees or their wood, esp Pterocarpus santalinus (red sandalwood), a leguminous tree of SE Asia having dark red wood used as a dye
[C14 sandal, from Medieval Latin sandalum, from Late Greek sandanon, from Sanskrit candana sandalwood]
sandal or sandal
[C14 sandal, from Medieval Latin sandalum, from Late Greek sandanon, from Sanskrit candana sandalwood]

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009
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Word Origin & History

c.1511, earlier sandell (c.1400), saundres (1329), from O.Fr. sandale, from M.L. sandalum, from Late Gk. santalon, via Turkish or Persian sandal, ult. from Skt. candana-m "the sandalwood tree," probably lit. "wood for burning incense," related to candrah "shining, glowing," and cognate with L. candere
"to shine, glow" (see candle).
Online Etymology Dictionary, © 2010 Douglas Harper
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Example sentences
One of them, a steroid with the scent of sandalwood, seems to calm the mildly
It is envisioned as a complex of richly painted and gilded courts, constructed
  with cedar, fir and sandalwood.
My sarong, freshly laundered, sports a lingering fragrance of sandalwood.
Outside on the patio, sandalwood chips are piled into a mound on a table.
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