Yes, it can be used with lipstick, but the timing and technique matter to avoid smudging. The balm is best used as a base layer applied at least 5-10 minutes before your lipstick. This allows it to absorb slightly and form a smoother canvas, which can help prevent matte or long-wear lipsticks from clinging to dry patches. Blot any excess with a tissue before applying color to avoid a slippery surface that causes pigment to slide.
Using it over lipstick is not generally recommended, as it will likely dissolve the color and cause it to transfer or wear off unevenly. The oils and emollients in the balm break down the lipstick's film. For a glossy look over color, a dedicated lip gloss is a better choice. If your lipstick tends to feel drying, look for hydrating lipstick formulas or use this balm consistently in your routine (like overnight) to improve overall lip condition, reducing the need for constant layering. Always test your specific lipstick combination to see how it holds up.