Star anise is a spice made from the fruit of the Chinese evergreen tree Illicium verum. It's aptly named for the star-shaped pods from which the spice seeds are harvested and has a flavor that is reminiscent of licorice.
Star anise is used much like a dried cinnamon stick. Think of it as a pod that you add to dishes and then scoop out prior to eating. The fruit is actually a schizocarp, an 8-chambered fruit with each containing a seed. It is not the seed that contains the flavor but the pericarp.