Chamomile in the form of an aqueous extract has been frequently used as a mild sedative to calm nerves and reduce anxiety, to treat hysteria, nightmares, insomnia and other sleep problems, Chamomile preparations are commonly used for many human ailments such as hay fever, inflammation, muscle spasms, menstrual disorders, insomnia, ulcers, wounds, gastrointestinal disorders, rheumatic pain, and hemorrhoids. Essential oils of chamomile are used extensively in cosmetics and aromatherapy.In modern times, chamomile is mostly taken orally to help with insomnia, anxiety, and digestive upsets, though it's also being investigated as a possible treatment for diabetes. It's also used topically to quell skin conditions and to help with wound healing. The research, however, isn't strong for any of these purported benefits because chamomile hasn't been well studied in people.