A Tasmanian scientist is testing the state's unique leatherwood honey for medicinal benefits that could increase its value by millions of dollars a year.

Leatherwood honey has already been proven to be high in antioxidants.

Testing is now being done in Hobart on the antibacterial hydrogen peroxide which is produced when leatherwood is diluted.

Researcher Charles Dragar says the honey could be used like manuka to heal wounds and boost the immune system.

"The presence of activity in the leatherwood is not in question but there is certainly the question of shelf life and how long that activity is present as the honey is being stored on the shelf, or by the producers," he said.

The first results will be released to beekeepers in three months.