Tea tree oil traditionally has been used to prevent and treat skin infections because of its anti-septic properties. It is acquired by steam distillation of the leaves of the melaleuca alternifolia, according to the Mayo Clinic. Some research also points to tea tree oil as a promising treatment for head lice.
Considerations
Head lice are insects that live and reproduce by biting your scalp. Head lice are spread most commonly by direct head-to-head contact, according to the Centers for Disease Control & Prevention (CDC).
Preliminary research suggests tea tree oil may be an effective treatment for head lice alone or when used in combination with other substances. The Mayo Clinic says larger, well-designed studies are necessary to confirm these assertions.
Evidence
An Australian study compared tea tree oil and other botanical substances with synthetic compounds that typically are used to prevent head lice. Researchers discovered it was the slippery nature of the oils and not their repellent abilities that blocked the transmission of head lice to treated hairs.
Researchers found tea tree and peppermint to be the most repellent of the oils tested. The findings of the study were published in April 2007 in the International Journal of Dermatology.
Shampoo Study
Researchers in Utah determined an herbal shampoo that contained asimina triloba or paw paw, thyme oil and tea tree oil was toxic to head lice. The findings of the study involving Paw Paw Lice Remover Shampoo were published in December 2002 in the journal Phytomedicine.
Combination Treatment
Mixing a small amount of regular shampoo with 1 teaspoon of tea tree oil, 3 tablespoons of olive oil and 1 teaspoon of eucalyptus or rosemary oil may eradicate head lice, according to Drgreene.com. This shampoo blend should be thoroughly massaged into your hair. Wear a snug fitting shower cap and allow it sit for 30 minutes Wash your hair two or three times to get the oil out.
Side Effects & Warnings
Tea tree oil can cause an allergic reaction that includes redness, rash, blisters and itching when it is applied to the skin. Adverse reactions may range from mild contact dermatitis to severe blistering rashes. You should not use tea tree oil as a treatment for head lice if you have a known allergy to tea tree oil.



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