Lavender oil has been used mainly as a fragrance in perfumes and cosmetics. It is used pharmaceutically to mask odors in creams and ointments. However, it also has well-documented sedative properties when used in aromatherapy. It is also used in massage oils as a skeletal muscle relaxant. Like many other essential oils, lavender has several constituents that have antimicrobial activity.

Lavender has a long tradition as a mild sedative. It is used in herbal pillows or massage oils for its calming effect. Studies in both animals and humans have supported this use. Lavender has shown sedative effects, increased sleeping time, and reduced anxiety in mice. Use of lavender as aromatherapy in intensive care patients improved mood and lowered anxiety. Changes in EEG after inhalation have indicated an increase in drowsiness, increased relaxation and decreased stress anxiety. Lavender has been used successfully to treat insomnia. The German Commission E indicates lavender for "states of unrest, difficulty falling asleep, and functional upper abdominal complaints." Traditional local use of the lavender flower, Alhusema, has included restlessness and stomach distress.

Many essential oils have antibacterial and antifungal activity. Lavender oil has been used in other countries as an insecticide. Linalool, an active constituent of lavender oil, has been shown to have antimicrobial activity against 17 bacteria and 10 fungi. It has also been shown to be toxic to mites and cat fleas.

Lavender has also been used to promote wound healing. This effect could be a result of its antimicrobial activity; however, leaf preparations also contain high (12%) tannin levels which may have effects on tissue healing. Lavender oil has been used historically to treat sores, ulcers, burns and scalds. It has also been used to relieve pain from arthritis and insect bites. Studies have shown some mast cell stabilizing properties which inhibits the release of histamine locally which could help explain its usefulness.

Lavender is considered safe and nonirritating when applied to the skin but there have been reports of allergic reactions from direct exposure to the skin. Because of possible rapid absorption, caution should be used with excessive amounts in massage oils or bath oils. Care should also be used during pregnancy because lavender may have contractile effects on the uterus. Direct use of undiluted preparations should be avoided.

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