New The purifying properties of Tea Tree oil aren't just good for hair and skin, you can also use Melaleuca oil to keep your fingernails and toenails looking and feeling healthy. Reap the benefits of Tea Tree oil for nails by applying some oil to your fingernails and toenails after you get out of the shower. Tea tree oil is said to have antibacterial, antifungal, antiviral, anti-inflammatory, and analgesic properties.