T. wallichiana is a multipurpose tree species valued as a source of timber, fuelwood, fodder, tea, traditional medicine and since the early 1990s, paclitaxel and other taxanes used in anti-cancer medications. For at least several centuries, the young shoots, leaves and bark of T. wallichiana have been used for their medicinal properties. In India extracts from bark and leaves are used in Unani medicine as a source of the drug Zarnab, prescribed as a sedative and aphrodisiac and for the treatment of bronchitis, asthma, epilepsy, snake bites and scorpion stings. In Ayurvedic medicine, young shoots are used to prepare a medicinal tincture for the treatment of headache, diarrhea and biliousness. The leaves are also used for the treatment of hysteria, epilepsy and nervousness. Bark and leaves are considered to possess anti-fertility properties. It has been used in steam baths to treat rheumatism. A paste made from the bark is also used to treat fractures and headaches. The inhabitants of the buffer 116 buffer zone villages of Nanda Devi Biosphere Reserve in India collect taxus bark and leaves mainly for traditional teas and for curing colds and coughs, a practice also common in other rural areas.

Herbal formulations using T. wallichiana are manufactured in India. Extracts are also used in medicinal hair oils. In Pakistan, decoction of the stem is used against tuberculosis. In North America and Europe, yew was used for making implements, bows, musical instruments, utensils etc. Its wood is valued for strength, durability, decay resistance and decorative characteristics. It is used locally for cabinet making, furniture, veneers, parquet floors, gates and roofs.

Taxol is one of the most promising anti-neoplastic drugs to emerge from the anti-tumour screening of natural products in recent years. It is being used clinically in the treatment of ovarian cancers and is undergoing clinical trials against metastatic breast cancers. It may also have potential value for lung, head and neck cancers. The mode of action is unique in that it enhances the polymerization of tubulin, the protein subunit of the spindle microtubules and induces the formation of stable, non-functional microtubules. As a consequence Taxol disrupts the dynamic equilibrium within the microtubule system and blocks cells in the late G2 and M phase of the cell cycle inhibiting cell replication. Taxol is hydrophobic and therefore the injectable concentrate preparation for intravenous infusion is solubilized in polyoxyethylated castor oil. Before injection, it must be diluted in sodium chloride (NaCl) or dextrose solutions or combinations thereof. Taxotere is a side-chain analogue of Taxol which has also been produced by semi-synthesis from 10-DAB. It has improved water-solubility and is being clinically tested against ovarian and breast cancers. It is considered a faster-growing drug than paclitaxel in US markets. Paclitaxel has also been used in coronary stents.