Abstract Chamomile oil or extract, derived from the chamomile flower, is a natural remedy with various therapeutic properties. This review summarizes the current knowledge regarding the medicinal properties of chamomile oil or extract including its antimicrobial, antidiabetic, antitumor, and anti-inflammatory activities. Chamomile oil has exhibited antibacterial and antifungal properties against various microbes, involving Escherichia coli, Candida albicans, Pseudomonas aeruginosa, and Staphylococcus aureus. It has also been found to regulate blood sugar levels in animal and human studies, making it a potential candidate for diabetes treatment. Moreover, chamomile oil has antitumor properties, as it can induce apoptosis in cancer cells and inhibit their growth. In addition, chamomile oil has anti-inflammatory features, making it a possible option for treatment under inflammatory circumstances such as eczema, arthritis, and inflammatory bowel diseases. Chamomile oil has also been found to have valuable impacts on poultry farming due to its antimicrobial properties. It may be utilized as an organic substitute for antibiotics in chicken production. It is effective against common poultry pathogens, including Salmonella and E. coli, and can also improve poultry growth and feed conversion rate. In conclusion, chamomile oil or extract are promising natural remedy with various therapeutic properties and useful impacts on poultry and small ruminants.