Why would you put oil in your nose?

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Because it lubricates and protects the nasal passages and sinuses. It's an Ayurvedic practice called nasya. It is part of the therapies performed during panchakarma, but also is something that can be part of daily routine, and is a way to administer herbs to all parts of the head and the brain. It can be done with ghee medicated with herbs, with herbal powders, but what we see most is medicated oils. 

You probably think it's strange, but it is an easy and effective way to protect yourself from allergens, from viruses and bacteria, it can help your migraine or headache, stiff neck, ear and throat pain, and on a subtle level it positively influences  your intake of prana - the life force. Made with specific herbs the practice of nasya might deepen your meditation. 

It also counteracts the drying effects from doing neti - nasal rinsing with salt water which clears out excess mucus and particles that we inhale with the air.

Best is to do the practice on a daily basis at a specific time, but doing it once a week is also helpful. It's not an everything-or- nothing kind of thing. 

Be sure to follow these directions:
Do NOT do nasya right after using the neti pot. 
Do NOT do it right after bathing. Wait at least an hour.
DO NOT do it when you have a sinus infection, a cold, or when there is inflammation or a lot of mucus present in the nose.
Before applying the oil, gently blow your nose.
Lie down on your bed, with your head off the edge. Apply 2 to 5 drops of nasya oil to each nostril, and GENTLY sniff it up, alternating nostrils.
Spend another minute or so lying there to let the oil get deep into your sinuses. 
A little bit of oil typically gets into your throat. This is not a problem, just part of the process. When you get up you might have to scrape your throat and spit it out. You might need to blow your nose a few times. The practice can be clearing, so this is to be expected.

​The effect will be that you will suffer less airborne allergies, and will have less colds, and it will make your head feel better in general.

Nasya oil is available from many companies who sell Ayurvedic herbal products.