Monoterpenoides are common plant extracts and are found in abundance in many essential oils (including tea tree oil). They are aromatic and volatile - they are also found in a great number of 'herbal' headlice lotions. Note that "...monoterpenoids are neurotoxins and have a lethal effect on insects' nervous system. Since they have yet to be registered as true medicines, stringent toxocological data on long-term use has never been compiled. (1)"
Reviews concerning treatment of head lice stated that although herbal treatments (including tea tree oil) and aromatherapy are sometimes used to treat head lice, no studies have evaluated their efficacy or possible toxicity (2)
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