Neem oil is a vegetable oil pressed from the fruits and seeds of the neem. Neem is increasingly a key ingredient in modern cosmetics and pharmaceuticals.
According Maharshi Ayurveda (http://www.mapi.com/ayurveda_health_care/newsletters/neem.html) : The oil is derived by crushing the seeds. Like the leaves, Neem oil is used to treat skin problems. It is especially effective in treating head lice and dandruff, and creates a purifying effect when used in aromatherapy. Fortunately, you can enjoy the benefits of Neem oil, bark and leaves even if you don't have a Neem tree growing in your front yard!
Neem Oil Lice Protector Combine 10% Neem oil with 90% coconut or sesame oil. Apply to the hair and massage the oil into the scalp. Comb the oil through to make sure it is evenly distributed. Leave it on overnight. In the morning wash your hair with Herbal Flaky Scalp Shampoo. Repeat five to six times, on alternate days, until the lice have disappeared. This formula also helps flaky scalp.