Incense is an indispensable material with religion and life in Asia. It is also a bridge of cultural expression and inheritance. Because the operating environment concentration of dust generated during the production process is considerable, most of the research pertaining to the hazard of incense factories has investigated air pollution, such as PM2.5, PM10, and VOCs. However, the production of incense causes dust dispersion, high temperature from ovens, and static electricity generated by friction. It can all possibly lead a dust explosion. To prevent and alleviate hazard from re-occurring, we used sandalwood dust at an incense factory in Taiwan, measured the effect of moisture content on the explosion parameters under normal conditions by 20-L apparatus, and used the oven to diminish its moisture content to 0%, 10.0%, and 15.0% as a control group to analyze the explosion characteristics at the different moisture contents, such as maximum explosion pressure and explosion limit. The results showed that the minimum ignition energy of dry dust was 30 mJ. Beyond doubt, incense factories face potential explosion hazards. The above results could be evaluated by the most dangerous range to avoid incense dust in this range at the workplace, lessening hazards caused by a dust explosion. The effect of moisture content on the suppression of the dust explosion was explored.