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Lavender doesn't just smell good. It is antifungal, antiseptic, anti-inflammatory and antibacterial.
From the aromatherapy aspect, it is calming and frequently used as an antidepressant.
Lavender is one of the few essential oils that can be used undiluted on the skin.
A drop on an insect bite or burn or blemish, speeds healing and “enhances the overall feeling of well-being.”