The essential oil of bay leaves is extracted by steam distillation of leaves from the bay tree. Bay leaves essential oil has a strong, spicy scent similar to that of cloves. Bay leaves calm the autonomic nervous system. When added to baths they stimulate the circulatory system. For bronchial problems they are a useful antiseptic. For colds, use bay leaves in combination with eucalyptus and inhale, add it to a bath, or use it in the aroma lamp.

Around the turn of the century bay leaves were usually the recommended remedy for scalp problems. Bay leaf oil has been recommended for use in shampoos, hair lotions, and treatments for hair and nails.