Chinese Agarwood (Aquilaria sinensis, also known as Chen Xiang) has a long history of use in Traditional Chinese Medicine (TCM) for calming the mind and alleviating insomnia. Historical TCM texts, such as the Compendium of Materia Medica and Ben Cao Gang Mu, describe Agarwood as possessing sedative properties, often included in herbal formulas intended to "anchor the spirit" and address sleep disturbances, anxiety, and restlessness. Its use is typically as part of complex herbal combinations rather than as a single-agent therapy.

From a scientific perspective, there is limited but emerging evidence that Agarwood essential oil and extracts may have sedative or anxiolytic effects in animal models, possibly through modulation of GABAergic neurotransmission or other pathways. However, robust clinical trials in humans assessing Agarwood’s efficacy for insomnia are lacking. Most of the support for its use in this context remains rooted in tradition rather than validated by modern pharmacological studies.

In summary, Agarwood is traditionally used in TCM to support sleep and treat insomnia, but the scientific evidence supporting these effects is still preliminary. Its continued use for insomnia is primarily justified by its historical and cultural context in East Asian medicine.