Matricaria recutita L. (chamomile tea) is widely used as tea all over the world for variety of ailments. It is renowned medicinal herb in Southern and Eastern Europe. In the present study chamomile tea was evaluated for CNS activities. Different behavioral activities for anxiety and depression were tested. The administration of chamomile produced a significant reduction of the cage crossing, head dips and the time spent in light compartment on day 7th indicating its anxiolytic effect. Chamomile tea produced significantly increased struggling time and the time spent in central compartment after 30 and 60 days representing its antidepressant role after prolonged use. Chamomile tea also improved learning ability in both rats and mice after 60 days administration. In the present study we have assessed the antioxidant effects of chamomile tea in chlorpromazine induced cataleptic oxidative stress in rats. The chamomile tea extract has protected rats from catalepsy as compared to the negative control group and the results were almost like standard drug, Levodopa. In present study we have evaluated the antidiabetic activity of chamomile tea. There was a decrease in the fasting, post parandial blood glucose and HbA1C levels and the results were comparably similar to that of glibenclamide treated rats, used as standard. We studied the anti-inflammatory of chamomile tea extract. Our results indicate that use of chamomile tea was able to attenuate paw inflammation, as compared to control and showed almost similar effects as ibuprofen used as standard. We also analyzed the analgesic effects of chamomile tea extract in mice and showed significant increase in the latency time at 30 min and 60 min only on chronic dosing. The study was conducted in rats to investigate the effects of chamomile tea on coagulation, hematological parameters and biochemical parameters such as lipid, hepatic, electrolytes and renal profile. There was decrease in the level of fibrinogen in rats after 30 and 60 days of administration of chamomile tea. The levels of aPTT were maintained indicating that chamomile tea can be used safely without any risk of bleeding. The administration of chamomile tea highly significantly increased the number of RBCs, Hb and platelets on day 30th and 60th, indicating positive effects on hematological parameters. There was increase in the levels of total bilirubin on day 30th and 60th however the values are within normal range. Levels of SGPT were slightly raised on day 60th, but within normal limits. The levels of ALP were increased but were not in hepatotoxic range. The slight increase in the levels of GGT also requires further investigation to ensure that chamomile tea is completely safe and has no adverse effects on liver. The chamomile tea administration initially increased the levels of sodium and chloride while the levels of potassium were reduced as compared to control animals. The levels of potassium are particularly increased on day 60th and hence result in compensatory decrease in the level of sodium and chloride but are still greater than control animals. In our present study chamomile tea has significantly reduced the levels of urea. The levels of creatinine were initially increased on day 30th but were normalized on prolonged use, indicating that chamomile tea is not renally toxic and can be safely used. The data from current study indicates that the widely used chamomile tea has antioxidant, anti-diabetic, anti-inflammatory and analgesic potential. It can play a beneficial role in anxiety and other psychiatric diseases such as depression. Overall results did not reveal any significant toxicity. Further studies are required to confirm the mechanism of its observed pharmacological, biochemical and hematological effects.