Although earlier studies conducted in India have not been able to find the exact action of guggul, studies conducted in the U.S (University of Texas and Baylor College) established that Guggul extract, blocks the activity of a receptor in the liver's cells called Farnesoid X Receptor (FXR). Analysis of guggul gum shows the active ingredients are plant sterones or "guggulsterones". In addition, the data supports the idea that the two compounds, Z- and E-guggulsterones, work with the body to significantly lower serum triglycerides and cholesterol as well as LDL and VLDL cholesterols (the "bad" cholesterols) as it raises levels of HDL cholesterol (the "good" cholesterol). Since guggul is also an antioxidant, guggulsterones also keep LDL cholesterol from oxidizing, which protects against atherosclerosis. Guggul has also been shown to reduce the stickiness of platelets--another effect that lowers the risk of coronary artery disease.

In animals, guggul has been shown to affect thyroid functions and increasing the levels of metabolites in the body. This may help in the treatment of obesity but little is known about guggul's action on human thyroids.