Cajeput oil is produced by steam distillation of fresh leaves and twigs of the cajeput tree (Melaleuca leucadendra) and the paperbark tree (Melaleuca quinquenervia). ... Cajeput oil is used to treat colds, headaches, toothache, and tumors; to loosen phlegm so it can be coughed up (as an expectorant); and as a tonic.