The principal areas of trees from which Balsam of Peru oil is produced are mainly along the Balsam Coast where El Salvador meets the Pacific Ocean; the trees are often planted for their shade on coffee plantations. Balsam of Peru is also typically known as Peru Balsam, however the name is somewhat misleading as to its origin. In the past, the balsam was transported by land from El Salvador to coastal cities of Peru; from these ports, the balsam was shipped to other countries, thus acquiring the misconception of its origin.[3]

The historical uses of Balsam of Peru date as far back as the early Mayan culture where it was used as incense for ceremonial purposes. Sixteenth century popes sanctioned the substitution of Balsam of Peru for the much harder to find Mecca balsam (Balm of Gilead) for ceremonial incense use as well as for anointing oils.