It is used in Taiwanese traditional medicine as a purported remedy for cancer, hypertension, and hangover.

[3] Taiwanofungus camphoratus has been found to produce anti-obesogenic, anti-inflammatory and antidiabetic effects in high-fat diet-fed mice.

Because of its use as an herbal remedy, fruiting bodies of the fungus can fetch high prices.

Good quality fruiting bodies were reported to cost as much as US$15,000/kg in 1997, before artificial cultivation methods were developed.

[5] Some have illegally farmed the fungus in the forests of Taiwan by hollowing out endangered stout camphor trees (Cinnamomum kanehirae).