Chamomile tea, made from dried chamomile flowers, is used for treating several health ailments such as anxiety, insomnia, fever, inflammation, parasitic worm infection and much more (although the scientific studies on benefits of chamomile tea is limited).
The Two major chemicals contributing to the medical properties of chamomile tea are terpenoids and flavonoids. Terpenoids have antibacterial properties and acts as chemopreventive. Whereas flavonoids is a powerful antioxidant which has anti-inflammatory property.
Health Benefits of Chamomile Tea
Reduces Anxiety and Sleep Problems
Chamomile is found to reduce anxiety in people with mild to moderate general anxiety disorder(GAD). It helps to reduce insomnia, nightmares and other sleep problems.
Chamomile tea made from chamomile flower provides similar benefits. Furthermore, chamomile tea has been used for centuries to induce sedative effect(calmness). 
Cures Various Gastrointestinal Condition and Spasms
Traditionally, chamomile has been used for treating arthritis, back pain, stomach cramps as well as digestive disorders, ulcers and irritation in stomach.
Drinking chamomile tea is beneficial during inflammation, muscle cramps, various gastrointestinal conditions and to reduce spasms related to gastrointestinal and inflammatory abnormalities. 
Drinking chamomile tea helps to boost your immune power which helps to fight against cold. Moreover, inhaling steam with chamomile extract can help you in fighting against symptoms of cold. 
Learn more on - how chamomile tea helps to fight cold
A study shows that, daily consumption of chamomile tea with meal helps to control glucose level and increase liver glycogen storage. This helps prevent diabetes complications such as kidney damage, blindness and nerve damage.
People with diabetes must however understand that chamomile tea only helps in preventing health conditions that arise with diabetes. Chamomile does not cure diabetes. 
Chamomile tea has anti-inflammatory property. That's why it is used to treat skin inflammation, sores, rashes, sun burn as well as eye inflammation (although evidence-based research treating these conditions are limited). 
Fastens Wound Healing
Chamomile increases the rate of wound contraction and prevents breaking of wound. Also, it reduces the wound area significantly (compared to when chamomile is not used) suggesting faster wound healing process. 
Chamomile tea also helps in healing burns. Dip a bag of chamomile tea in a cup of boiling water. As the water cools down, dip a cloth or cotton balls into it and apply on the burnt parts.
Skin Benefits of Chamomile Tea
Moisturizing properties - Chamomile tea is naturally filled with healing, cleansing, anti-oxidant, and moisturizing properties and works as a skin care treatment. 
Reduces Premature aging - Chamomile tea has antioxidants which help to protect skin from skin-aging radicals and prevents premature aging. 
Heals acne - Chamomile helps to heal acne and heal various skin related allergies because of it's anti-septic, antimicrobial and anti-inflammatory properties. Therefore, it would be a nice idea to switch to cosmetics containing chamomile extract to get rid of any skin related problems. [9, 10]
Reduces dark circles - Generally, herbal teas are not considered effective in removing dark circles and puffy eyes but chamomile is an exception.
Chamomile tea can give relief from eye puffiness and lighten up dark circles. For this, you will have to boil water and dip two bags of chamomile tea until water is cooled. Then, place the cooled tea bags over your eyes for 5 minutes. Make sure that the tea does not get into your eyes. 
Learn more about Benefits of chamomile tea for skin.
Hair benefits of Chamomile Tea
Reduces dandruff - Chamomile tea can sooth irritated scalp as well as reduce and prevent dandruff. Mix 200 ml of chamomile tea with a tablespoon of white vinegar and apply it on scalp. Leave for 5-8 minutes and wash off thoroughly. This will help you in getting rid of those scaly flakes in your hair.
Minimizes split ends - Regular use of chamomile tea for the last rinse of your hair may help to prevent split ends and tearing of the hair. For better result you can also rinse your hair with the mixture of chamomile tea and beer.
Promotes hair growth - "Chamomile has special property that may help to prevent hair loss", according to book "The Practice of Aromatherapy". Chamomile tea can also improve the metabolism. And balanced metabolic level helps your hair grow fast. 
Learn more about Chamomile tea for hair and how to use it.
Is Chamomile tea safe for you?
Chamomile is non-addictive and harmless. But if you have certain allergies like: allergies related to daisy and aster plant family or pollen allergy, it's better to stay away from chamomile tea. Also, if you take blood thinner medication, you should avoid chamomile tea as it is a natural blood thinner.
It would always be a good idea to consult with your doctor before switching on to chamomile tea if you are under any other medication.