Yes, German Chamomile essential oil is a natural, non-habit-forming sleep aid. Diffusing this essential oil at bedtime, or using it with a carrier oil for a soothing chest rub, can help you fall asleep faster, sleep more soundly, and avoid waking up in the middle of the night. German Chamomile essential oil benefits for sleep come from its unique flavonoid composition, including a compound called apigenin, which produces a mild natural sedative effect in the brain.