The rapid progression of machine learning, especially deep learning (DL), has catalyzed a new era in drug discovery, introducing innovative approaches for predicting molecular properties. Despite the many methods available for feature representation, efficiently utilizing rich, high-dimensional information remains a significant challenge. Our work introduces ChemXTree, a novel graph-based model that integrates a Gate Modulation Feature Unit (GMFU) and neural decision tree (NDT) in the output layer to address this challenge. Extensive evaluations on benchmark data sets, including MoleculeNet and eight additional drug databases, have demonstrated ChemXTree's superior performance, surpassing or matching the current state-of-the-art models. Visualization techniques clearly demonstrate that ChemXTree significantly improves the separation between substrates and nonsubstrates in the latent space. In summary, ChemXTree demonstrates a promising approach for integrating advanced feature extraction with neural decision trees, offering significant improvements in predictive accuracy for drug discovery tasks and opening new avenues for optimizing molecular properties.