The Compost Wrap is used for Health restoration, healing 30 each after a short animation where Wormwood smears a brown substance over his body and face. Like most healing items, it can be used to heal most Mobs in the game, excluding Chester and most Monsters.
In Don't Starve Together, the Compost Wrap cannot be used by other character for Health. It is flammable and can be used as Fuel. The Compost Wrap can also be used as a very potent fertilizer.