Tea Tree essential oil has a moisturizing effect, which helps to soothe dry skin, as well as reduce itching and irritation. If you’re suffering from dandruff or dry scalp, add a few drops to a carrier oil (such as olive or coconut) and apply to your scalp. You can also apply the mixture to your beard to use as a beard oil, or to any dry area on your face or body as a natural moisturizer.