Fragrant rosewood (Dalbergia odorifera T.C. Chen) is a highly-valued species suffering from vulnerability due to over-development for wood and medicine. In this study, Fragrant rosewood seedlings were cultured with chitosan oligosaccharide (CO) addition at rates of 0 and 1/800 (v/v) under artificial lightings by 200-W high-pressure sodium (HPS) lamps and 280-W light-emitting diode (LED) panels for a 15 h daily photoperiod and a natural illumination as the control. The LEDs were designed to emit lights in 85% of red (600–700 nm), 15% of green(500–600 nm), and 5% of blue (400–500 nm). The height of artificial lightings was elevated every five to seven days to keep the mean photosynthetic photon flux density (PPFD) of 72–73 µmol m⁻² s⁻¹ of artificial lighting at shoot-tips. Seedlings under LED lighting with CO addition had the greatest diameter growth and leaf biomass, as well as the highest nutrient utilization and evaluated quality, while those under HPS lighting had a higher stem sugar concentration but unchanged shoot growth and biomass compared to the control. In conclusion, we recommend Fragrant rosewood seedlings to be cultured with CO addition under LED lighting to efficiently promote synthetic quality and nutrient utilization.