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Eucalyptus oil is used in Natural Skin Care Products for its ability to reduce redness and irritation of the skin. Eucalyptus Oil is also known throughout the world for its use as a decongestant in colds and influenza. Eucalyptus oil is reputed to aid in wound healing and is antiseptic and anti-parasitic. Eucalyptus oil is the generic name for distilled oil from Eucalyptus, a genus of the plant family Myrtaceae native to Australia and cultivated worldwide.