Control insomnia. Chamomiles mildly sedating and muscle-relaxing effects may help those who suffer from insomnia to fall asleep more easily.Treat diverticular disease, irritable bowel problems and various gastrointestinal complaints. Chamomiles reported anti-inflammatory and antispasmodic actions relax the smooth muscles lining the stomach and intestine. ...Soothe skin rashes (including eczema), minor burns and sunburn. Used as a lotion or added in oil form to a cool bath, chamomile may ease the itching of eczema and ...Treat eye inflammation and infection. Cooled chamomile tea can be used in a compress to help soothe tired, irritated eyes and it may even help treat conjunctivitis.