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The tea originates from the Wuyi Mountains region of Fujian, China and is considered a Wuyi tea (or bohea). It is also produced in Taiwan (Formosa). It has been labelled as smoked tea (熏茶), Zheng Shan Xiao Zhong, smoky souchong, tarry lapsang souchong, and lapsang souchong crocodile. While the tea leaf grading system adopted the term souchong to refer to a particular leaf position, lapsang souchong may be made with any leaf of the Camellia sinensis plant,[citation needed] though it is not unusual for the lower leaves, which are larger and less flavourful, to be used as the smoking compensates for the lower flavour profile and the higher leaves are more valuable for use in unflavoured or unblended teas. In addition to its consumption as a tea, lapsang souchong is also used in stock for soups, stews and sauces or otherwise as a spice or seasoning.

The flavor and aroma of lapsang souchong is described as containing empyreumatic notes, including wood smoke, pine resin, smoked paprika, and dried longan, it may be mixed with milk but is not bitter and usually not sweetened with sugar.

The aroma is a heady mixture of pine and hardwood smoke, fruit, and spice, the flavor is pine smoke with some dark stone fruit.