Absolutely! In fact, applying organic mulch (like wood chips) around a young tree is the single best practice you can do to give that tree a healthy start, according to the Kansas State Master Gardener extension. Just make sure you keep your tree roots safe. 1) Spread mulch 3-6 inches away from the tree trunk. Never mulch directly around the tree trunk. It’s unhealthy for the bark and can cause internal rotting, disease, and even plant death. Think of your mulch ring like a donut: You want a hole in the middle. 2) Extend your mulch ring 3-6 feet around your tree. To promote growth, you’ll want the widest ring possible.  3) Spread your layer of mulch 2-4 inches deep.  4) Add fresh mulch yearly. First, pull away the mulch that has settled at the tree trunk. Then, check your mulch depth and remove old mulch as needed: Your mulch layer should never be higher than 4 inches. 5) Expand the ring’s diameter as the tree grows to give roots the full benefit of mulch.