Some health benefits of pau d'arco tea are the easing of yeast infections and treating upper respiratory tract infections, according to WebMD. It also contains an ingredient that might be effective against cancer, but the patient would have to drink so much of the tea that it could become toxic.
Pau d'arco is also used as a treatment for prostate inflammation and infections, ulcers, diarrhea, gastritis and diabetes, according to WebMD. When treating a yeast infection, the tea can be placed directly on the problem area. Pau d'arco is harvested from the inner bark of a tree that is native to South America.