Obtain your desired finishing method for the wood. To maintain the wood’s natural color, only a clear coating of polyurethane is necessary. If you desire a richer red or yellow, stain the wood with the appropriate color of wood stain, then seal with polyurethane. Polyurethane will only block some of the natural fragrance of the wood, while staining and then sealing will diminish it much more.
Use the wood for flooring. As long as it is sealed against water, cedar can be used for flooring in a wet room like a kitchen. This type of flooring was very common in some older homes and was used because it was very durable.
Create paneling. Fully finished wood is ideal for this application and will provide the warmth and look of cedar, without having it lose its color over time. Cedar boards can be nailed up over the wall studs to create a paneled look. This installation method is very similar to installing a floor; it's just done vertically.
Create a cedar-lined pantry or closet. Unfinished cedar wood works best for this project. It's a natural insect repellant that will help protect your food or belongings. You will be able to take advantage of its natural smell without having to worry about having the color degrade, since it will not be visible when the door is shut.