The analgesic, antiseptic and antibiotic properties of lavender essential oil make it great for treating colds, flu and coughs and the best way to use it for these conditions is inhalation through steam. Steam is a great anti-viral treatment on its own, but when combined with lavender essential oil you get soothing and decongesting elements, along with the destruction of bacteria, which may be responsible for further infections. Lavender essential oil is a wonderful sedative which helps aid in sleep. When massaged into the temples, lavender essential oil may help to relieve headaches.