Sandalwood is source of essential oil and as non-wood commodity of forest, which is potential and considered luxurious due to its distinctiveness hard wood and containing specific oil scent. Sandalwood oil can be produced from its wood by extracting from its tree trunks, twigs, brances, or root. The economic value of sandalwood plan is derived from its oil content (santalol) which has unique scent. A volatile oil contained in sandalwood is the sesquiterpenoid compound; among them are α-santalol dan β-santalol. Interaction between genetic factors of plant with its environment is a major factor that determines the growth and development of sandalwood plant that eventually affecting the volatile oil that can be produced. Engineering efforts are required against factors that related with oil extraction in order to obtain its maximum production in both in quantity and quality. Sandalwood oil has high functional value, some of them are as the material for aromatic therapy which is particularly beneficial for human health, as cosmetic material, and as material for medicines.