Apart from skin, tea tree oil help to alleviate issues like insect bites and hair problems. Not to be confused with the unrelated common tea plant that is used to make black and green teas, tea tree oil also known as melaleuca oil -- is applied to the skin (used topically) for infections such as acne, fungal infections of the nail (onychomycosis), lice, scabies, athlete's foot (tinea pedis), and ringworm. Shikhee Agrawal, Head Training, The Body Shop, lists benefits of tea tree oil: