Camphor oil is used in many balms, ointments & lotions because of its therapeutic benefits. When applied topically it provides relief from pain, irritation and rashes. Here are the 5 powerful benefits of camphor oil. Camphor oil is generally safe when used in minimal amounts to heal skin infections. Camphor oil products should never be used on open wounds, broken skin or cuts. Please avoid direct contact with your eyes as well. It is not safe to be consumed.