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We study the thermal entanglement in the two-qubit Heisenberg XXZ model with the Dzyaloshinskii-Moriya (DM) interaction, and teleport an unknown state using the model in thermal equilibrium state as a quantum channel. The effects of DM interaction, including Dx and Dz interaction, the anisotropy and temperature on the entanglement and fully entangled fraction are considered. What deserves mentioning here is that for the antiferromagnetic case, the Dx interaction can be more helpful for increasing the entanglement and critical temperature than Dz, but this cannot for teleportation. [ABSTRACT FROM AUTHOR]