Neem oil has a long history of use in its native country of India where it is used extensively. It is one of the most popular medicines in the Ayurvedic tradition which regards it as something of a panacea. Neem extracts are also used in agriculture as natural alternatives to synthetic pesticides, the compound Azadirachtin is largely responsible for this action.

Neem oil has traditionally been used for a myriad of skin complaints ranging from infections, through to baldness. In Ayurveda it is regarded as a Pitta pacifying agent making it useful for hot, dry conditions such as eczema or pruritis.