The word "橄榄树" is formed by combining the two-character compound "橄榄", which specifically means "olive", with the character "树", meaning "tree". The characters 橄 and 榄 both incorporate the wood radical (木), indicating their association with plants, and together they function as a phonetic unit to denote the olive fruit. Attaching "树" specifies the plant type, creating a straightforward compound noun that literally translates to "olive tree".