People have heard that essential oils can stop hair loss and balding and make new hair grow. Hair loss can be caused by many things. Things like broken hair follicles and hair shafts are examples of these. Cedar oil is a great way to take care of these problems. Also, cedarwood oil improves blood flow to the scalp, which helps hair grow and strengthens hair follicles. It also keeps the oil glands in the scalp in balance, making it easier for hair to grow.