Chamomile is one of the best-known herbs around and is good have on hand for emergencies. Its sedative qualities are helpful for nervousness and cramps. Chamomile tea is often used to help calm the nerves and reduce stress. A volatile oil compound in chamomile is thought to be responsible for its mild sedative effects. One of the most common uses for chamomile is to aid in digestion and relive indigestion. It works by calming and relaxing the smooth muscle lining of the digestive tract. As an added bonus, Chamomile contains a natural hormone similar to thyroxine that helps strengthen the hair and skin.