PABA is one of the basic constituents of folate  and also helps in the assimilation of pantothenic acid. PABA can be converted into folate by intestinal bacteria. This antioxidant helps protect against sunburn by reducing the absorption of ultra-violet-B (UV-B) radiation. Consequently, it helps to prevent skin cancer. It also acts as a coenzyme in the breakdown and utilization of protein; and assists in the formation of red blood cells. 

PABA also aids in the maintenance of healthy intestinal flora. Supplementing the diet with PABA may restore grey hair to its original  color if the greying was caused by a nutritional deficiency. Other benefits of PABA include  protection against 2nd hand smoke, ozone and other  air pollutants; reduced inflammation in arthritis; and enhanced flexibility.  

A deficiency of PABA may lead to depression, fatigue, gastrointestinal disorders, fraying of the hair, irritability, nervousness, and patchy areas of white skin.