It's used in herbal medicine! (4)
I believe the answer is:
balm
'medicine' is the definition.
(balm is a kind of medicine)
'it's used in herbal' is the wordplay.
'it's' becomes 'bal' (I can't explain this - if you can you should believe this answer much more).
'used in' means to look at the middle letters (the letters used on the inside of the word).
'herbal' becomes 'pepperminttea*' (I've seen this before).
The middle of 'pepperminttea' is 'm'.
'bal'+'m'='BALM'
Can you help me to learn more?
(Other definitions for balm that I've seen before include "Aromatic herb" , "It comforts, soothes" , "'Ointment, salve (4)'" , "Something soothing" , "Soothing substance" .)